Christmas day takings down 60% for hospitality

Hospitality revenues on Christmas day 2021 were down 60% compared to 2019, according to data from industry body UKHospitality. 

Figures show that, on average, restaurants, pubs and bars lost £10,335 in the week leading up to Christmas. 

The findings show the extent of the industry's battle to recover from the Covid-19 pandemic and the rise of the Omicron variant. In the weeks preceding the emergence of the strain, average sales had been nearing pre-pandemic levels (98%). 

City centre and central London venues have particularly struggled amid the government's work from home guidance, which has driven a steep decline in consumer confidence and customer footfall. With December takings usually equating to three months' worth of trading, this shortfall hinders financial recovery by at least the same amount of time – and not just for the hospitality sector but for the whole country, with the latest ONS figures showing growth in Q3 was driven by hospitality. 

Kate Nicholls, UKHospitality CEO, comments: "Hospitality businesses have been hit hard during a key trading period – and this after missing out on the crucial Christmas and New Year sales last year.

"Restrictions must be kept to a minimum and must be lifted as quickly as possible to help an already beleaguered sector or many will simply not survive – and those who do make it through face a return of 20% VAT in April.

"In order to help the industry recover and return to growth, the government must commit to keeping VAT at 12.5% and offering enhanced rates relief. Further support will also be needed should additional restrictions be imposed or the tougher measures in Scotland and Wales be retained into 2022."

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