40% of Restaurants, Pubs and Bars in Cheshire may not re-open #Blog
Stephen Wundke
20th April 2020
Taste Cheshire, the company who represents the Food and Drink Industry across Cheshire issued this stark warning today after surveying 100 of their members and related businesses. Taste Cheshire members, who operate Pubs, Bars, cafes and Restaurants in Cheshire revealed that a staggering 40% believed they will be unable to open without government assistance if the lockdown was lifted on the 20th June, some three months after closing. Only just over half of those surveyed said they may be able to open but were uncertain what would happen after that time. Only 2.5% were confident of re-opening at all.
Stephen Wundke, Taste Cheshire CEO has been involved in the industry for over 30 years and believes this is the toughest time it has ever faced. “Reading through both the figures and comments from our survey was incredibly sad. Cheshire has about 1500 establishments that employ 25,000 people, representing a huge part of Cheshire’s success as a destination and this sector has been hit, disproportionately, incredibly hard. Our figures show that 65% have already reached agreements with their suppliers not to pay them until they are able to re-open and a staggering 87.5% needed to get their landlords to agree a payment holiday on their rent, just to survive.”
There was both good news and bad news regarding the promised government intervention. 82.5% have been able to furlough their staff, 12.5% are still paying full wages and thankfully only 7.5% have needed to make people redundant at this stage.
However, sadly less than half had managed to get one of the government grants and not one of the businesses who had applied for a government backed loan had been successful.
The banks didn’t come out of this survey well either with all of those who had been successful in increasing their borrowings to support their business having to provide extra Director’s Guarantees.
Wundke is most concerned about what happens when the lockdown is lifted. The survey showed that 64.5% would have less than 50% of their normal stock remaining. “This is a huge issue. When we re-open, everyone will be trying to get stock from suppliers and producers at the same time and many people are already at the limit of what they can pay for. Suppliers will be understandably reluctant to offer more credit when they too have seen no income. Most staff will also want to return to work which is not as big a problem, but cash starved businesses must find a way to pay wages after furlough finishes. In the weeks after bringing staff back and before reopening, they will have to train them to follow new operating procedures and how will they fund that training period? I fear this will just be too much for some.
We are at a precipice for the industry, which, without further and direct help, could crumble. “
With all this in mind, Taste Cheshire is determined to take action to help. Backed by the survey data, Taste Cheshire have presented a proposal through the Cheshire & Warrington Local Enterprise Partnership and Marketing Cheshire, to get the Industry back on its feet.
The proposal includes a restocking and re-staffing grant, based on turnover that would see a typical business that turns over £400,000 a year getting, on average, about £12,000 as a grant to assist.
Most businesses surveyed believe they could get things going again with this sort of sum as a grant. Across Cheshire and Warrington Taste Cheshire estimate this would cost central government about £18 million and if adopted across the whole of England that would be in the region of £2 billion. To save 3 million jobs and all the businesses that sit behind them, it seems a small price to pay.
Taste Cheshire have also recommended re-opening plans with Social distancing in mind that include table service only, all tables to be 2 metres apart, a door person to ensure safe access and egress from the premises and toilet monitors to ensure that there is no unsafe practice in this area. Taste Cheshire think the determined Cheshire hospitality industry can get things up and running using these types of procedures but a whole new set of risk assessments will be necessary for all businesses. It may not be perfect, but it might just provide us all with the safe “going out” experience we all want.
Taste Cheshire hope central government will take this on board and find a way to help this stricken industry before it is too late.
The Taste Cheshire survey also revealed that a mere 17.5% of businesses had found a way to deliver or provide take away food but the remainder 82.5% had no income at all since the 20th March.
