Pub and brewery group Marston’s has become the latest firm operating in the struggling hospitality sector to announce plans to make major job cuts.
The company has launched consultations on up to 2,150 roles, saying the new coronavirus restrictions such as the 10pm curfew and table-only service, along with the recent closure of pubs in parts of Scotland and Northern England, had forced its hand after months of progress in reopening hundreds of its sites.
Marston’s said that all of the employees concerned are currently furloughed. However, with firms now expected to make a higher contribution to wages under the new Job Support Scheme, the company has started a full cost review to see out the latest curbs on trading.
Marston’s had reopened 99% of its 1,350 pubs since lockdown, with like-for-like sales said to be averaging 90% of last year’s levels.
The company has already scrapped its dividend and stated it needs more funding to navigate through the crisis.
Marston’s Chief Executive Ralph Findlay said: “The additional restrictions which have been applied across the UK most recently present significant challenges to us and will make business more difficult for a period of time.”
He said he regretted the job cuts, but that they were “an inevitable consequence of the limitations placed upon our business”.
Earlier this week, Mitchells & Butlers, the owner of pubs chains such as Harvester, All Bar One and O’Neill’s, revealed that it had begun redundancy consultations without disclosing how many jobs were at risk.
NAM Implications:
- Best assume the inevitable i.e. most pub businesses dropping sales by 50%, at least…
- …and consider how that impacts your business…
