Food and DrinkNews

UK hospitality sector loses £53bn in sales this year

The UK’s hospitality sector has lost sales of more than £53bn in 2020, with more losses expected due to the recent tier restrictions imposed on trading.

The new Covid-19 vaccine could provide grounds for cautious optimism in 2021, according to the new CGA report.

The eighth edition of the ‘Survival to Revival’ report has shown the impacts of the pandemic and lockdown on UK hospitality, including the fall in consumer confidence, with 78% of British adults concerned about the long-term financial implications of the pandemic.

CGA has reiterated the “bleak prospects” for Christmas trading, as 98% of England’s licensed premises remain severely restricted in Tier 2 and 3 areas.

However, the report also celebrates the hard work and achievements of operators and suppliers in 2020, especially on keeping people safe.

It showed that 95% of consumers have been satisfied with the level of hygiene they have found in venues this year, and 55% now say they feel safer in hospitality venues than in shops and supermarkets.

The report also sets out major trends and developments for businesses to track in 2021, which includes an acceleration in consumer use of technology in restaurants, pubs and bars, a further increase in delivery sales of alcoholic drinks as well as food and a continuation of the lockdown trend of eating and drinking close to home rather than travelling to city centres.

Karl Chessell, business unit director, retail and food at CGA, said: “This has been the most difficult year in hospitality that most of us have ever known, and our report is a chance to reflect on the havoc it has wrought, but just as importantly to look forward to what we all hope will be a happier 2021.

“Sadly there have already been many business casualties in our sector, and more will inevitably follow as a result of the onerous limits on trading and socialising at what should be the busiest time of the year.”

He added: “But among businesses that have been able to sustain themselves, the pandemic has instilled a resilience and innovation that will stand them in good stead for years to come.

“The road to recovery clearly has a long way to run yet but there is light at the end of the tunnel, and at some point in 2021 we can hope for a release in the pent-up demand for all the experiences that people love in hospitality.”

 

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