Coronavirus: Hospitality firms on the brink of collapse as footfall dives
Struggling hospitality firms could be nearing the brink of collapse due to a dive in footfall across London’s pubs and restaurants this weekend as punters stayed home to avoid the coronavirus outbreak.
Hospitality companies are preparing to make redundancies as soon as this week, as visitors to London’s restaurants and bars fell 39 per cent on Saturday.
Across the UK footfall dropped 37 per cent according to analysis by Wireless Social.
Some restaurants and bars could have just four to six weeks left before they run out of cash, Jonathan Downey, the founder and chief executive of London Union, which owns street food markets across London including Dinerama, told Morning Wire
Downey said the government should do more to help businesses survive the “devastating and unprecedented” impact of coronavirus.
He said a business rates holiday must be agreed, landlords must be supported to provide rent breaks, while the government should provide more in emergency loans.
“The budget was a complete waste of time in hindsight…it is just meaningless now because things are moving so quickly and in 48 hours the entire landscape changed. We need a huge response and we need it quickly,” Downey said.
“We need a response that matches the level of pain that is coming and the collapse that is coming.
“The view in the industry is that most businesses have four to six weeks until their cash flow runs out.”
Last week chancellor Rishi Sunak announced a £30bn stimulus package to support the UK economy through the coronavirus outbreak.