The Office for National Statistics (ONS) has published new data looking at the impact of covid-19 on the whole of the hospitality sector up to early June 2021.
The article uses card transaction data from Revolut. This shows that while consumer spending on pubs and restaurants has recovered significantly from its low during the first lockdown, it still stood at 36% below its pre-downturn level in the week ending 27th June.
The publication also contains new breakdowns of data from the ONS’s Business Insights and Conditions Survey (BICS). It shows that while the share of businesses within accommodation that had high confidence in their own survival over the next three months grew from 39% in early April to 47% in early June, the share of businesses that were licenced restaurants and pubs and bars actually both fell from 18% to 15% and 20% to 14% respectively.
In addition, the article contains transactions data from Vocalink, the first time the ONS has used this data source, which shows that although expenditure by food and drink businesses to their suppliers initially increased a little in the run-up to the April re-opening, it still remains at only 51% of its February 2020 level.
Hotels, on the other hand, saw a large spike in spending in March, possibly as they prepared to welcome back guests, before again falling back to 72% of its February 2020 level in May.
James Calder, chief executive of the Society of Independent Brewers (SIBA), said: “Today’s publication of the impact on the hospitality sector shows the continued toll on our struggling pubs and brewers, devastated by the covid-19 pandemic.
“With payments to businesses such as breweries only around half of its pre-pandemic levels, and consumer spending at less than 70%, the sector needs further flexibility on VAT, beer duty, and other tax debts to make it through the recovery.
“Even as restrictions are being lifted today, this analysis demonstrates it will take a very long time for consumer confidence to return and for businesses to again turn a profit.”
He added: “SIBA believes that this is the time for the government to announce sector-boosting policies such as a lower rate of beer duty on draught beer and positive reform of small breweries’ relief to save our local pubs and small breweries.”
Emma McClarkin, chief executive of the British Beer & Pub Association, added: “This ONS study is yet further evidence of just how devastating the pandemic has been for hospitality.
“The recovery of our sector has only just begun now restrictions have been lifted, but these ONS figures show far our sector has to go to return to viability.
“The numbers are clear — more investment is needed now for our sector so it can play a leading role in building society and the economy back better. The government must do this by reforming VAT, beer duty, and business rates by which pubs and other hospitality businesses are greatly overtaxed.”
