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Hospitality Industry Suffers Huge Hit To Sales Over Festive Period

Written by Robert Moore Marketing Manager 14 January 2022

Hospitality Industry Suffers Huge Hit To Sales Over Festive Period

The hospitality industry suffered big sale declines in the last week of the year, new figures have shown. Sales were 60% down on Christmas Day while Boxing Day sales fell  (31%) and takings on New Year’s Eve – one of the biggest individual trading days in the calendar for many venues – were down by more than a quarter (27%).

UKHospitality and CGA said this was a “lost Christmas” A separate industry survey, said that the hospitality sector saw a loss of sales of around 40% in December. This translates to a £3bn hit to the industry, versus 2019. Venues in Scotland and Wales were hit even worse in the week leading up to new year, where more stringent restrictions were in place. Omicron put back any recovery that the sector was experiencing in the Autumn and sales were close to pre-pandemic levels (98%).

UKHospitality chief executive Kate Nicholls, said: “December is a vital period for hospitality businesses, equal to three months’ worth of trading for many. These new figures are crippling for an industry already struggling but also spell disaster for the wider UK economic recovery, as Office for National Statistics (ONS) figures showed overall growth in the third quarter was driven by hospitality. These sales drops versus 2019, and also against our members’ projections before the onset of the new Omicron variant, will have taken most businesses from healthy trading for the month to painful losses, delaying the sector’s recovery and extending hospitality’s long covid. Cash reserves are severely depleted, and some businesses will struggle to survive the first quarter of 2022. This dreadfully disappointing December has further stymied our ability to deliver jobs, growth and investment at pace, which we all know is so crucial to the recovery of our economy overall.”

At Company Rescue we have a great deal of experience helping businesses in the hospitality trade rescue their businesses.

We also have a page that helps employers deal with employees in this situation.

We have brought out our guide in preparation for tough times ahead for those in the hospitality trade.

Read our guide: Turning Around or Restructuring your Struggling Restaurants, Pub or Hotel Business

Category: Hospitality

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