As many hospitality businesses reopen this week, we spoke to over 100 food and drink businesses in the UK to understand the financial impact of the pandemic on their livelihoods.
Our research reveals that Covid-19 has cost pub and restaurant owners more than £40,000 each.
Our study of businesses in the food and drink industry – including pubs, restaurants and cafes – found that so far owners have lost £40,313 on average already in lost earnings.
As a result of restrictions, many businesses have been forced to close completely or struggled to access government support.
While many hospitality businesses with outside space are now allowed to open their doors, the date for welcoming customers inside is still many weeks away.
Our report shows business owners expect financial challenges to continue, predicting losses to reach £45,470 in total. This is more than double the expected loss for the average small business, which was highlighted in our recent Covid-19: one year on report.
There are still reasons to be optimistic, with 89 per cent of food and drink business owners planning to continue or restart their current business.
And more than one in 10 started a new business in the last 12 months.
Additionally, positive developments and news of the vaccine have given a boost in confidence to hospitality business owners:
More generally, we've researched how the pandemic has affected the mental health and wellbeing of the self-employed and small business owners across the country.
While there’s no underestimating the emotional and financial impact of the pandemic, food and drink business owners have shared some positives of lockdown.
|Positive||% of businesses|
|More time with family where they can||60%|
|Focus on themselves||30%|
|Learn new skills||20%|
|Adopt a new technology into their business||11%|
Our UK CEO, Alan Thomas, said: “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.
“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.”
He added: “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 outdoors with friends and family.”
Are you preparing to reopen? Let us know how you’re getting on in the comments.
We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer
22 June 2020 • 9-minute read
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