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Hospitality Venues Closing At A Rate Of 16 A Day

Written by Robert Moore Marketing Manager 13 October 2021

Hospitality Venues Closing At A Rate Of 16 A Day

The latest market recovery monitor from industry consultants CGA, and business advisory firm AlixPartners, said that 980 hospitality venues closed their doors between July and September 2021, which equates to 16 every day.

The research said a range of "operational challenges" including labour shortages, disruption to supply and rising costs were responsible for the closures.  This follows 6000 closures last year.

The study said chains were more able to adapt than independents due to the challenges facing the sector since the July reopening. Nightclubs have been particularly badly hit with nearly 100 lost since July.

Industry body UKHospitality estimates 660,000 jobs have been lost in the sector during the pandemic and it is campaigning for the rate of VAT to be maintained at its interim level of 12.5%.

Graeme Smith, AlixPartners' managing director, said "These figures are a stark reminder, if needed, that the full lifting of restrictions in July did not signal an end to the challenges faced by hospitality businesses.

"The impact on nightclubs, which were unable to trade at all during the pandemic, has been particularly acute with almost one in 10 sites closing in the past two months.

"Demand remains strong but with staff shortages, utility cost inflation and supply-chain disruption, there are renewed efforts to secure continued government support to the industry to help it weather this storm as the reopening and rehabilitation process continues through what may be a challenging winter."

Category: Hospitality

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