New restrictions on pubs and restaurants are likely to cause thousands of job losses and further damage hospitality businesses, the boss of a leading UK brewing and pub chain says.
Kevin Georgel, chief executive of St Austell Brewery, said his firm is dismayed to see Prime Minister Boris Johnson slam further restrictions on an industry already reeling from the impact of the coronavirus lockdown.
And he said it is doubly galling because he says there is little evidence the hospitality trade it causing the recent increase in Covid-19 infections. He said a 10pm curfew could even encourage pub-goers to socialise more and attend underground events.
Mr Johnson, speaking in the House of Commons, said all pubs, bars, restaurants and other hospitality establishments in England will be required to close by 10pm from this Thursday, September 24, and must operate a table service only, except for takeaways. The restrictions are likely to remain in place, the Prime Minister said, for six months.
But Mr Georgel, whose Cornwall-headquartered company has 182 managed or tenanted pubs and breweries in St Austell and Bath, said: “We are disappointed and concerned to hear today’s news about the 10pm curfew for hospitality.
“Our sector has been one of the hardest hit by the pandemic and these new restrictions will cost thousands of jobs and further damage businesses, that are already struggling to recover.
“As a pub company, we take the role we play in controlling the spread of the virus incredibly seriously. Since reopening on July 4, we have worked tirelessly to adapt to new guidelines and made significant investments to ensure our pubs are safe, regulated and welcoming environments for our staff and customers.
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“With the launch of the NHS Test and Trace app imminent, we will continue to stress the importance of complying with government regulations including the new ‘rule of six’.
“However, while we are fully committed to supporting the Government in managing the risk of rising infection rates, there seems to be very little evidence linking hospitality with the recent rise in cases.
“Government data shows that just 5% of infections out of the home are related to hospitality and curfews that have been put in place locally have not been proven to cut infection rates,” he stressed. “Furthermore, a curfew increases the likelihood of pub goers socialising in non-regulated environments after 10pm.”
Mr Georgel added: “This is a very delicate moment in our sector’s recovery and the Government must recognise that these new restrictions will inevitably damage consumer confidence.
“Initiatives like the Eat Out to Help Out scheme were hugely successful in rebuilding consumer confidence last month, but that progress is now in danger of being wiped out.”
He called for a new support package for hospitality and said it is essential to prevent thousands of job losses across the industry and help businesses work towards a safe and sustainable recovery.
“We need confirmation from the Government that the VAT cut will be extended through to the end of 2021, that the business rates holiday will continue next year and that there will be a substantial cut to the rate of beer duty in the autumn budget,” he said. “We would also welcome a sector-specific employment support package for hospitality.”
Meanwhile, Stuart Elford, chief executive of Devon and Plymouth Chamber of Commerce and chair of British Chambers of Commerce South West, called the Government’s new measures “a blow to confidence” for businesses and customers.
He said: “This will be a blow to business confidence and consumer confidence. Customers are wondering if it is safe to go out again, and businesses are thinking about will they be shut down again. The question for some businesses now is will it be profitable for them to open at all.”
Mr Elford sympathised with the challenge faced by the Government but said its message had been confusing. He added: “I can understand why the Government is reticent to completely shut leisure and hospitality, they are treading a fine line between treating the virus and stopping economic freefall, but they are giving different messages – it’s not long ago we were doing Eat Out to Help Out.”
