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On-trade revenue dropped by up to 30% over Christmas

The Night Time Industries Association (NTIA) surveyed more than 450 of its member businesses over the festive season.

the NTIA surveyed on-trade businesses
Most of the UK on-trade businesses surveyed saw revenue and footfall fall

The majority of on-trade businesses surveyed saw revenue drop between October and December, with 21.7% experiencing a 0% to 10% decrease, 18.8% seeing an 11% to 20% decrease, and 13% encountering a decrease of more than 30%. Another 20.9% saw revenues increase, while 8.7% remained the same as last year.

Footfall was also down for 57.1% of businesses, with 22.8% reporting an increase and 5.7% stating footfall levels were maintained.

With revenues down, the NTIA asked on-trade businesses about their ability to sustain operations. Of those surveyed, 55.7% of businesses estimated they could survive up to four months without government support, while 25.7% estimated they could only continue for two to three months.

Support that businesses found appealing included a VAT reduction (82.9%), the restructuring of business rates or further relief (57.1%) and additional energy support (32.9%).

Nearly a third (31.4%) called for an alcohol duty freeze.

Recent industrial action also affected business, with 70% saying they’d suffered adverse impacts.

“The night-time economy is grappling with the widespread impact of external factors, unpredictable consumer behaviour, ongoing financial challenges, and the limited sustainability of businesses without support,” said Michael Kill, CEO of the NTIA.

“It is imperative that we address these issues with targeted government interventions. The findings underscore the fragility of the night-time economy, emphasising the urgent need for coordinated efforts to ensure its survival and facilitate a robust recovery.”

The survey results are the latest sign of trouble for the UK’s hospitality sector, which saw several high-profile closures in the first week of the year.

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