Research and reports
Pub and restaurant owners are both ‘excited and anxious’ about reopening their doors on Monday, welcoming some ‘normality’ but uncertain about the recovery from the pandemic.
In total, 68% of hospitality business owners have had to temporarily stop trading during the pandemic as a direct result of multiple lockdowns and restrictions. 45% have been earning less money, despite government grants, and only a quarter (27%) have been eligible for furlough.
Covid has cost pub and restaurant owners £40,000 each on average in lost earnings, according to a study of businesses in the food and drink industry by small business insurer Simply Business.
This is more than double the amount that the average small business has lost so far during Covid-19 (£15,673) – demonstrating the scale of the impact on an industry which has been particularly affected by the various lockdowns and restrictions of the past year.
What’s more, despite the reopening, owners expect losses to continue – with Covid-19 set to cost them £45,470 each in total on average.
Simply Business spoke to four UK pub and restaurant owners who have experienced prolonged closures to customers to hear their views about reopening on Monday. Unsurprisingly, there are mixed feelings - unease about how they will cope after such a long closure but excitement at getting their business back on track.
Emma Taylor, owner of Jack’s bar and grill in Stockport, “We are both excited and anxious to open on Monday. Unlike many others we’ve had no outdoor space so this is our first opening in months. I’m worried the public will expect our staff to be back to their old selves with full confidence straight away. Naturally, it will take a couple of days for us to iron out some cracks. But I can’t wait to welcome customers through the door! Not just for the cash flow, just for some normality.”
Dobrina Nikolova, owner of Dobby’s food, a bulgarian restaurant in Chatham, Kent, added: “I know there will be a lot of interest from customers but I’m a bit nervous about it as I’ve stayed at home for so long. I believe we naturally got out of the routine we were used to before the pandemic. We need time to get in full working mode again. But it is exciting that we finally get to open! I’m happy that I will see my staff, my customers. It is nice to start doing the thing that defines me. As a restaurant owner, I was in my establishment for 20 hours a day, 6 days a week, it is something that I give all my heart to!”
Ilja Abbattisa, owner of Taquero, a mexican street food restaurant in Banbury, Oxfordshire, added: “I am nervous about reopening. We have plenty of customers wanting to come in but we are lacking decent staff to run the business. It is becoming increasingly more difficult to get good staff. Chefs are the most difficult to find.”
Runa Ahmed, owner of Gulab Tandoori, an Indian restaurant in Pentonville, London, said: “We are very anxious about opening, we’ve made such huge losses over the last year and the uncertainty around recovery is worrying.”
Despite the difficulty, 89% of food and drink business owners overall plan to continue or restart their current business, and more than one in 10 (11%) started a new business in the last 12 months – showing the clear resilience of the hospitality industry.
Furthermore, the vaccine rollout has boosted confidence among many hospitality business owners. Three quarters (76%) say the rollout has made them more confident about the recovery of their business. Nearly two thirds (63%) also say the government’s roadmap out of lockdown has given them sufficient reassurance to plan the future of their business. Over a third (36%) remain optimistic about life after lockdown.
Business owners have also utilised the time in lockdown to spend more time with family where they can (60%), rest (37%), focus on themselves (30%) and learn new skills (20%). Over one in 10 (11%) have been able to use the pandemic to adopt new technologies into their business.
Alan Thomas, UK CEO at Simply Business comments: “Few have been hit harder than the hospitality industry in this last year, and the scale of the impact on small businesses and the self-employed is abundantly clear in our latest research. Covid-19 has cost pub, restaurant and cafe owners over £40,000 each on average, which is a huge collective loss to the economy.
“More importantly beyond the economic hit, we should recognise that behind each of these small businesses is a small business owner – each with families, livelihoods, and dreams. The impact of the pandemic on so many of these individuals and their communities has been devastating, both financially and emotionally.
“Against such a tough backdrop it's inspiring to see small business owners display such resilience – and this is especially true for the hospitality sector where 89% plan to continue or restart their current business. So as hospitality owners prepare to safely reopen their doors, there are reasons to be hopeful – as the country can enjoy a well-deserved meal or drink with friends and family.”
Data: Survey of 123 small business hospitality owners from across the UK, conducted March 2021
Launched in 2005, Simply Business provides an online brokerage service, delivering policies tailored to individual business requirements. Using the power of tech and data to create the best possible customer experiences, Simply Business employs over 800 people across offices in London, Northampton, and Boston in the US.
Owing to its internal underwriting capability, Simply Business can cover over 1,000 trade types – ranging from plumbers to accountants to dog walkers. An accredited B Corp for their positive social impact, Simply Business has also been voted the Sunday Times Best Company To Work For twice in a row.
We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer
6th Floor99 Gresham StreetLondonEC2V 7NG
Sol House29 St Katherine's StreetNorthamptonNN1 2QZ
© Copyright 2022 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.