On-trade

60% of BII pubs “making no profit” in UK

Whilst nearly nine in 10 of the British Institute of Innkeeping’s members are now open in some form or another, their businesses are “incredibly fragile”, with 60% making no profit even with staff on furlough and other financial support packages in place.
The survey finds that the most prominent complaints are from people who want to be able to drink at the bar and feel less restricted in their movement around the pub.

London, United The survey finds that the most prominent complaints are from people who want to be able to drink at the bar and feel less restricted in their movement around the pub.

Only 22% are trading at or above three-quarters of their usual turnover.

These figures emerged as part of the BII’s third survey of its members since the pubs there closed last March.

The survey shows that 38% of its members spent up to £3,000 on making their venues Covid-19-secure, 26% spent up to £1,000 and 19% up to £5,000. 17% spent more than £5,000.

15% of respondents have already had to make redundancies and 60% of them will have to make redundancies at some point of the next three months if trade continues as is.

Staffing levels have had to increase to make venues safe but despite this only 23% are certain that they’ll bring back all of their staff from furlough.

For over 40% of BII members, food is a major part of their business, forming over 30% of their turnover. For 43% of its members food forms less than 20% of turnover with half not serving food at all.

The survey finds that the most prominent complaints are from people who want to be able to drink at the bar and feel less restricted in their movement around the pub.

“Most are happy to comply with new rules, but don’t like the different atmosphere as much,” reports the BII.

The biggest challenge for respondents is achieving profitability (83%) followed by gaining consumer confidence (66%) and issues with staffing (38%).

One respondent worries, “How will we repay our debts when we are not even trading at normal levels now let alone when the Summer is over?”.

Of those with debt 28% have had a deferral, 19% have either had no help or debt discounted or deferred and 18% have had it cancelled.

10% have had their debts discounted only while 62% are being given concessions on rent/mortgage payments going forward.

The UK government needs to extend Business Rate Relief until April 2022 feel 76% of respondents and while ‘wet’ pubs have gained nothing from the VAT reduction, 71% want VAT reduction for a whole year. 66% want a long-term reform of business rates, 63% want further grant support and 46% want Government support on rent.

Others want support for pubs “whose business is decimated due to being music/performing venues”.

BII’s Chief Executive Steve Alton commented, “The results of this, our most recent survey, clearly demonstrate the ongoing requirement for additional support for our Great British pubs to ensure that they can remain at the heart of their communities, providing not only local employment and tax revenue but also friendship, support and immeasurable social value to their customers.”

 

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