The second quarter for UK pubs and bars confirmed sales losses of almost £30 billion.

The pandemic caused by the Covid-19 coronavirus has put the hospitality world in a particular situation.

In this case, UK sales in pubs, bars, restaurants and hotels fell by 87 % during this period of closure. This figure is equivalent to revenues of GBP 4,6 billion during the second quarter, as reported by UK Hospitality Quarterly Tracker via CGA data. A hard hit compared to the same quarter in 2019 when they recorded sales of £34 billion. Meanwhile, the first quarter recorded a 21.3% decline in sales. The UK is one of the countries most affected by the isolation, and only reopened on July 4th.

These losses do not affect the hospitality industry, but the country as well. In 2019 this industry contributed 133.5 billion pounds to the economy. Now however the declared annual value has fallen below 100mm pounds.


A few revealing figures about the current situation

According to Kate Nichols, CEO of the UK’s hospitality body, these figures “highlight how precarious the current situation is. And while it is great that many businesses are negotiating again, for many the situation is not viable. Meanwhile, some parts of the hospitality industry are legally required to remain closed.”

Kate Nichols points out that this is just the first stage of recovery. She urged the government that its support is needed if further business failures and job losses are to be avoided. However, the measures that the government has offered so far benefit more the food than drinks businesses.

UK Chancellor Rishi Sunak excluded alcohol from a six-month cut in value added tax (VAT) for the hospitality and tourism sectors. The VAT rate in the hotel and tourism sector was reduced from 20% to 5% from 15 July 2020 to 12 January 2021. However, it will only apply to food and non-alcoholic beverages.


Don’t drink and drive. Enjoy responsibly.


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