Hospitality revenues half since pre-pandemic

Hospitality has been deemed an "industry in peril" in the latest edition of the UKHospitality and CGA Quarterly Tracker, which reveals that both Q3 2021 sales and full 12-month figures are almost half what they were in the same period prior to Covid-19. 

The data highlights a 45% drop in sales for the 12 months to end-September 2021 compared to year to end-September 2019, before the pandemic was in full swing, and annual sales remain £60bn below the annual turnover of £132bn in 2019. 

However, the sector continues to pull out all the stops, showing that it could return to full strength, driving economic growth and job creation, if given the right support. This year's Q3 sales, for example, indicate a 73% growth rate compared to the same quarter last year, which reflects the benefits of removing lockdown restrictions. 

UKHospitality chief executive, Kate Nicholls, comments on the findings: "Ours is an industry in peril, and this latest data reflects a sector fighting on all fronts for survival. Since trading restrictions were lifted, operators have been plagued with a labour crisis and supply chain issues, not to mention soaring inflationary costs. In addition, VAT has risen and the cap on business rates announced, announced in the last budget, penalises the most successful businesses in the sector as it means no business can claim more than £100,000. This means even smaller operators, with just three or four sites, will miss out on relief."

In terms of job losses and vacancies, UKHospitality estimates that the sector has lost almost 700,000 jobs since March 2020 and is currently seeing 10% vacancy rates, representing a shortage of around 200,000 staff across the UK. 

"Given all the above, the government must look at implementing measures to support the industry," adds Nicholls. "The most effective of these would be to rethink the cap on business rates relief and maintain the current lower 12.5% of VAT for the sector after April next year when it is set to return to 20%.

"If this support isn't put in place sooner rather than later, then consumers will find themselves paying higher prices, hundreds of hospitality businesses will collapse and thousands of jobs will be lost."

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