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UK hospitality lost almost £200m a day in 2020 reveals new figures

28 January, 2021

The latest edition of the UKHospitality and CGA Quarterly Tracker has revealed a 54% drop in sales for 2020 from £133.5bn in 2019 to £61.7bn.

Recent CGA research also indicated that around 6,000 licensed premises in Britain closed permanently in 2020 as a result of local and national lockdowns impoed by the government to prevent the spread of Covid-19.

Kate Nicholls, CEO of UKHospitality, said: “These figures are simply devastating; hospitality was hit first, hit hardest and continues to suffer because of pandemic restrictions brought in.

“And sitting behind this massive loss of revenue is the dreadful, real impact on people’s lives and livelihoods across all parts of the sector and supply chain. It is also yet another stark reminder of the importance of having an exit strategy from the current lockdown and providing ongoing support for sector businesses.

“We need the Chancellor to step up again in his forthcoming Budget to deliver a bold, wide-ranging package of financial support that ensures as many businesses and jobs as possible are saved and the sector returns to growth. An extension of the VAT cut and business rates holiday must be top of the menu.”

The UKHospitality Quarterly Tracker is compiled by CGA and based on its Trading Index and OPM data on food and drink sales across the on-trade.

It is combined with hotel data supplied by STR, fast food market data supplied by NPD Group’s Crest Panel, and direct company contributions. It is complemented with ONS statistics.

Phil Tate, group chief executive of CGA, said: “This is the clearest evidence yet of the shattering impact of the Covid-19 pandemic on the country’s hospitality industry. With every week of restrictions, the sector loses more than a billion pounds of sales, hundreds of businesses and thousands of jobs.

“Widespread closures over December, the busiest time of year for so many restaurants, pubs and bars, were a devastating final blow in a year of unprecedented challenges.”

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