Becketts among hospitality businesses left facing an uncertain future in the wake of new Covid-19 restrictions

Published by Scott Challinor on September 24th 2020, 8:30am

It was news that very few will have wanted to hear, but the nation was left dismayed this week as prime minister Boris Johnson announced new national restrictions covering the whole of England in an attempt to curb rising Covid-19 cases.

The new measures mean that pubs, bars, and restaurants must close at 10:00pm each day, while no more than six people will be able to sit together at one time. Guests and staff are now obliged to wear face coverings in such settings while not sat at a table.

These restrictions entered force on Thursday, while from Monday next week, a maximum of 15 people will now be permitted to attend weddings and funerals.

The news from Westminster has once again rocked a hospitality sector that has already been stricken by the pandemic, and bewildered restaurant owners have been left reeling at the mixed messages that they have received throughout the course of the year.

Becketts, a restaurant and hotel business in Southsea, Portsmouth, had enjoyed an upturn in business following its much-anticipated reopening in August. Now, general manager Terence Carvalho has warned that the sector faces a rough ride over the coming months in what has already been a turbulent year and is concerned for the future of business.

Carvalho told Portsmouth’s The News: “The hospitality industry is taking a real hit this year. From Covid restrictions, limits on number of guests and now a 10:00pm curfew. Just a few weeks ago, the nation was taking advantage of Eat Out to Help Out and now it has become Close Up to Help Out.

“The number of cases is rising so of course it is only right the government put measures in place to ensure we don't require a second national lockdown. Another lockdown would be the final nail in the coffin for our economy and for many of our beloved businesses in Portsmouth.”

Yet, despite having to weather another setback, Carvalho remained confident that Becketts was one business that would be able to see out the challenge.

“This year at Becketts, we overcame every obstacle in our way and I'm confident the team will continue to overcome the challenges faced from this global pandemic.”

Hampshire Chamber of Commerce, an independent non-profit business support and networking organisation, urged the government to provide more support for the sector in the wake of the announcement, particularly with regard to the furlough scheme which is due to wind down at the end of October.

The Hampshire Chamber’s chief executive Ross McNally commented: “The new restrictions on pubs, bars and restaurants will dismay many in the hospitality and leisure sectors already bracing themselves for the withdrawal of furlough support in just a few weeks’ time.

“We therefore call on government to consider a targeted, flexible approach to furlough to help mitigate the impact of the restrictions.

“While of course the country cannot continue with a fully-fledged furlough subsidy for all sectors indefinitely, as the economic cost would be prohibitive, there is a good argument for maintaining a level of furlough support specifically for hospitality and leisure.

“It may not have to be as generous as the subsidies up to now, but a degree of flexibility, for example around part-time working, could make all the difference to struggling pubs and restaurants.”

National industry body UKHospitality has echoed McNally’s calls for prolonged support for the industry, warning that business closures and redundancies would be inevitable without it.

Chief executive Kate Nicholls said: “These restrictions are a further, potentially fatal, blow for many hospitality businesses. In isolation, they may appear moderate, but the cumulative effect is going to be hugely damaging. Consumer confidence is going to take another hit and we cannot hope to recover while confidence remains low.

“The shift back towards working from home is going to hit city centre hospitality very hard. These businesses have already lagged behind as office workers and tourists have stayed away and they are going to take another battering.

“Most disheartening is the announcement that they are potentially in place for six months. Lots of businesses will not survive this and we are going to see more and more people lose their jobs unless we have the support to counterbalance these restrictions.

“The government must immediately announce an exhaustive package of financial support, otherwise our sector is facing ruin. Employment support must be extended. The furlough scheme is already winding down and it comes to a complete halt at the end of October. Unless it is extended for our sector, businesses are inevitably going to have to make staff redundant.

“We also must have longer-term support to enable businesses to rebuild in 2021. The VAT cut for the sector must be extended as must the business rates holiday. We also need a rent-debt settlement package, otherwise whole businesses are going to go under with widespread redundancies.”

Photo by Drew Beamer on Unsplash

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Authored By

Scott Challinor
Business Editor
September 24th 2020, 8:30am

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