19 May 2022

Opinion from Adrian Leopard & Co

News impacting business from Adrian Leopard & Company - Insolvency Practioners & Mediators

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Pubs being lost at the rate of 46 a day at the beginning of 2021!
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Pubs being lost at the rate of 46 a day at the beginning of 2021!

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The pandemic is certainly taking its toll of hospitality businesses

A new report by CGA and AlixPartners tells us that we now have 7592 fewer licensed premises in Britain than we had before the covid-19 pandemic.

This is a huge loss and in January and February of 2021 the rate of permanent closure increased to 46 a day or one every 31 minutes, with a loss of 2713 during those months. The rate of closure has increased but this is not surprising as businesses hoping to survive simply ran out of money. At the end of February 2021 there remained 107516 sites, a reduction of 6.6% on March 2020.

The bulk of the losses, again unsurprisingly, were in the independent sector of small and family run businesses whilst the larger and better invested groups managed to hold their own more successfully. The report effectively confirms what has been thought to be the case for some while. The big question is will the hospitality sector recover any of these losses and how many of these premises will be lost for ever. This is not a new problem.

In the hotels market, permanent closures are taking place. Options of course are to convert to residential accommodation and care homes although the large amount of deaths due to covid-19 means that a lot of care homes have also gone out of business so it begs the question whether there is room for new ones to be opened up at this early stage.

And what has happened to your local pub? Is that still going? Perhaps there is scope to set up a community pub under multiple local ownership.

However what cannot be ignored is that during the pandemic the British public have got used to not going to their local pub or hotel for meals and drinking; they have had to! Instead there has been a growing market in take-away food and even bake-away has started to become very popular as well. The British are finding that eating at home does not have to be a chore and again people working from home have a greater opportunity to prepare their evening meals during the day whereas this was perhaps not possible when they had to go out to work. As we know there is a growing penchant for companies now to getting their employees to work from home.

So may be the demand for hospitality businesses will be down. This could suggest that there will be a reduction in demand for facilities for workers while there could be an increase for leisure eating and drinking as people determine that they need to get out of the house.

Keep your eyes closely focused on the issue; only time will tell.

Adrian Leopard 22-03-21

Photo Saru Robert

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Adrian Leopard & Company is the trading name of Alderney Offshore Ltd, a company registered in Alderney, Channel Islands number 1220.

Address P O Box 1027, Alderney GY9 3AS

Registered Office Seldomin, Longis Road, Alderney GY9 3YB.

Adrian Leopard & Co is represented in the UK by 3CL (UK) Ltd trading as Adrian Leopard Associates.

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