Greene King is shutting 79 of its pubs following the recent introduction of tighter coronavirus restrictions.
Whilst most of the closures are expected to be temporary until trading conditions improve, Greene King warned that about one-third of the sites are likely to shut permanently. Around 800 jobs are affected, with the company saying it hoped to find them roles elsewhere in the business where possible.
Green King stated that the 10pm curfew and winding down of the furlough scheme had led to the decision.
“The continued tightening of the trading restrictions for pubs, which may last another six months, along with the changes to (UK) government support, was always going to make it a challenge to reopen some of our pubs,” a company spokesperson said.
Greene King urged the UK government to do more for the struggling hospitality sector which took another hit yesterday when Scotland’s First Minister Nicola Sturgeon ordered pubs and restaurants in the country’s central region, including Edinburgh and Glasgow, to close for more than two weeks to help tackle the surge in coronavirus cases.
Whilst the Scottish government said businesses would receive an additional £40m of support, industry leaders warned the restrictions will push some of the country’s hospitality businesses over the edge.
Stephen Montgomery of the Scottish Hospitality Group, which represents several restaurant and bar groups, said: “The first minister has effectively signed a death sentence for many businesses across the Scottish hospitality industry.”
He added there would be a “catastrophic” economic cost.
Meanwhile, the Scottish Wholesale Association (SWA) called on the Scottish government to ensure that the financial support package announced in light of the new temporary restrictions covers food & drink wholesalers and others in the hospitality supply chain.
Colin Smith, SWA Chief Executive, said: “We recognise the difficulties the Scottish Government faces and that it is trying to balance public health with the need to support the Scottish economy but the most impacted businesses yet again are those operating in the hospitality and the wholesale supply chain which directly supports them.
“The temporary hospitality closure in the central belt and the restrictions across Scotland will have a massive impact on pubs, restaurants, hotels and cafes.
“While we welcome that businesses have been listened to based on the Scottish Government’s decision not to close the hospitality sector across the country totally, wholesale businesses are still being subjected to death by a thousand cuts.”
NAM Implications:
- Did anyone really expect post-lockdown to be any different…
- …and permanent closures of 800 pubs will be the least of the post-lockdown issues in the hospitality sector.
- Suppliers have to factor in permanent erosion of hospitality trade.
- How about exploring how a fall of 30% fits…?
