Hospitality like-for-like sales up 9.1% but 45% of sites remain closed resulting in total sales decline of 25%.
 
According to an analysis of more than 150 organisations that use S4labour’s workforce management software, sites that were open during the first week of a relaxation in rules, had strong sales, with like-for-likes up 9.1% compared to the same week in 2019. However, the analysis of the figures reveals a mixed and complex picture, with 45% of open sites trading at 90% or worse than 2019 of sales in same week in 2019.
 
In addition to this, 45% of hospitality sites were not open at all last week, resulting in an overall decline in hospitality sales of 25% compared to the same week in 2019.
 
Operators able to open, benefited from significant pent-up demand and weather conditions that, despite starting with a scattering of snow Monday morning, were generally dry and mild. The research suggests that the general public in England were keen to return to the beer garden for a drink, with open wet-led sites boosted by a 13.2% uplift in sales compared to the same week in 2019, while open sites that are food focused seeing an uplift of 7%.
 
Chief Product Office, Richard Hartley commented “with 45% of sites closed and only half of these sites able to trade at an equal or better level than 2019, these figures on re-opening week are far from a waving flag of success for current restrictions, rather an indicator of significant lost potential for operators.
 
S4labour’s Chief Customer Officer, Sam Wignell, added that “achieving 9.1% growth under trading restrictions that significantly reduced capacity to outside only, as well as the length of the trading day, is an indicator of what could have been for the industry. Those with outside space were able to capitalise on pent-up demand and many had a very successful week, but this will naturally dissipate as time goes on, further hitting those penalised for not having outside space.

Hospitality industry forecasts 70% of normal revenue to return when outdoor service resumes on the 12th of April.

Analysis from S4labour indicates that hospitality operators are forecasting 70% of revenue compared to the same week in 2019 (not 2020). The figure of 70% is somewhat remarkable considering that the vast majority of capacity, i.e. inside, will be unavailable. The research is also encouraging as the sector prepares to re-open with over a week left to secure even more bookings. 

The figures represent only sites that are preparing to re-open on the 12th of April and it is important to note that a large number of operators either have no outside space or not enough outdoor space to make opening feasible.

S4labour’s Chief Customer Officer Sam Wignell, commented “the figure of 70% of revenue compared with 2019 is in line with anecdotal evidence from conversations across the sector. There has been a scramble and huge investment to prepare outside spaces for the 12th of April, however, it comes with a large dose of caution as much of the pent-up demand could quickly be washed away with poor weather.” 

Alastair Scott, MD of S4labour and owner of Malvern Inns who operate 3 pubs, added “we have seen an unprecedented amount of bookings in all of our sites with customers showing a clear desire to meet up and start enjoying hospitality once more”.

Covid Hits Hospitality for £89 billion 

As the grim anniversary of the beginning of the first lockdown approaches, analysis from S4labour shows that the hospitality industry lost just over £89 billion in revenue through the full year since March 23rd 2020, when the hospitality industry was first instructed to close. This is equivalent to 68.9% of annual revenue, representing an average decline of half a £million per site across the U.K. 

The data shows that while there were huge declines for both wet and dry led sites, it was drink led sites that were particularly hard hit, slipping 78.6% in like-for-like revenue compared to food-led venues where the decline was limited to 62.1%.

There was a less marked difference between London and non-London sites, however, it was noticeable that wet-led venues in the capital suffered an 84.4% decline in sales, with little opportunity to offer takeaway or delivery during almost all variation of restrictions.

Scotland fared worse than England, with a 77% loss in revenue, and wet-led pubs in Scotland were the most affected category with an 88% decline like-for-like revenue.

Chief Customer Officer Sam Wignell added, during the last year, hospitality has had its ups but the downs have been significant and scarring for most operators. The figures are starkly clear, we cannot expect the industry to simply emerge on the other side of that loss still afloat and recover, even with pent-up demand.

2020 saw revenue decline of 51.38% overall, characterised mainly by a 98.3% decline in Q2 driven by lockdown 1. In the first two months of the year, prior to the effects of the pandemic, revenue growth was 6.6%. As pubs and restaurants opened up on the 4th July, consumers were hesitant leading to low demand levels and revenue was down 50.9%. Overall London was more affected, at a revenue decline of 56.0%, whilst Non-London performed better, at a decline of 50.2%.

The past year has been a tough one for everyone, and we just want to say thank you to you all.

S4labour has supported it’s customers with repeated 50% discounts throughout the pandemic.

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https://www.theguardian.com/business/2020/dec/28/christmas-takings-in-pubs-bars-and-restaurants-fall-almost-80

Analysis from S4labour shows that total hospitality industry sales were 79.4% down on last year from Christmas Eve to Boxing Day. Drink was down 84.2% and food was down 64%. Given that households were prevented from mixing in hospitality venues, it is no surprise that bookings were cancelled and sales plummeted.
 
Individually, total figures for the individual days were as follows: Christmas Eve was down by 71.5%, Christmas Day was down by 78.5% and boxing day was down by 88.1%.
 
During the festive period, sites often close for at least one of the days, however this year with the recent Tier 4 introduction, most sites have been unable to open this year the majority of sites were closed; 53.3% of sites were closed on Christmas Eve, 33.6% of sites were closed on Christmas day and 65.2% on boxing day.
 
Richard Hartley, Chief Product Officer commented: “this unpredictable year has ended in very suppressed Christmas sales due to ever increasing COVID restrictions, and it’s not looking likely to change for a while yet.”