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Quarterly tracker reveals ‘devastating’ drop in annual sales for hospitality industry

28th Jan 2021 - 08:28
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The latest edition of the UKHospitality and CGA Quarterly Tracker has revealed sales ‘collapsed’ from £133.5Bn in 2019 to £61.7Bn in 2020.

Recent CGA research also found that around 6,000 licensed premises in the UK closed permanently in 2020. The Tracker shows sales from October to December 2020 were just £14.3Bn- down by £18.7Bn (or 57%) on the last quarter of 2019.

Kate Nicholls, chief executive of UKHospitality, said: “These figures are simply devastating; hospitality was hit first, hit hardest and continues to suffer because of pandemic restrictions brought in.

“And sitting behind this massive loss of revenue is the dreadful, real impact on people’s lives and livelihoods across all parts of the sector and supply chain.

“It is also yet another stark reminder of the importance of having an exit strategy from the current lockdown and providing ongoing support for sector businesses.”

Trade body UKHospitality wants the Government to extend the VAT cut in an attempt to help hospitality businesses recover.

The UKHospitality Quarterly Tracker is compiled by CGA and based on its Trading Index and OPM data on food and drink sales across the on-trade.

Phil Tate, group chief executive of CGA, added: “Hospitality has responded to the pandemic with courage and innovation. Businesses have worked tirelessly to protect jobs, to support local communities and, when they are able to trade, to keep people safe.

“With a vaccine rollout underway there is at least some light at the end of the tunnel, and this sector is well placed to help recharge the UK economy as 2021 goes on. But it will only be able to do so if it gets the extensive support that is now desperately needed to sustain it over the next few months.”

Written by
Edward Waddell