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UK's hospitality sector suffered £53b drop in sales in 2020

24 December 2020 by
UK's hospitality sector suffered £53b drop in sales in 2020

The UK's hospitality sector suffered lost sales of more than £53b in 2020 due to the impact of coronavirus restrictions on trade.

That's according to the latest Future Shock report from CGA and trade body UKHospitality, which charts the impact of this year's challenges on the sector.

It records a £53.3b year-on-year drop in sales between the start of April and the end of September across the hospitality industry.

The study, released before the announcement that additional areas of England would enter Tier 4 from Boxing Day, predicted a "bleak" Christmas trading period with almost the all the country's licensed premises placed in higher tier areas.

It also shows the need for greater financial assistance from the government, with 27% of leaders of multi-site groups predicting they will be unviable by mid-2021 with current levels of support.

But there was cause for optimism over consumer perceptions of hospitality, with 95% of those surveyed stating they are satisfied with the level of hygiene in venues this year.

Just over half said they feel safer in hospitality businesses than in shops and supermarkets.

The study also reported a rise in delivery sales of both food and drink, and an increase in people eating out closer to home rather than venturing into city centres.

Kate Nicholls, chief executive of UKHospitality, said: "Undoubtedly, 2020 has been a disaster for the sector. Every aspect of hospitality in every corner of the UK has come under enormous pressure and we are by no means out of the woods.

"There is, though, every chance that with the right support businesses can begin to trade their way out of danger and towards some degree of prosperity next year. The roll-out of a vaccine should give us all confidence that the next year will be dramatically better than this one."

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Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

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