The hospitality sector is braced for a bleak Christmas as Omicron fears and Plan B restrictions cause late cancellations to pubs and restaurants around the country.
Hospitality businesses are warning they are already closing up for the holiday even though this is usually the busiest time of the year for the sector.
London is being especially badly affected by the absence of office workers due to the Omicron variant and advice to work from home.
Research by restaurant booker OpenTable indicates that London bookings had fallen by almost 50% compared to the pre-pandemic levels as of Tuesday this week.
That is way above the national average, which is 22% lower compared to the same time two years ago.
December also got off to a poor start according to the latest statistics from industry research group CGA.
Its data reveals that like-for-like sales of food and drinks have fallen to 89% and 86% of 2019 levels in the 2 weeks since Omicron’s emergence, having averaged 98% in the previous 12 weeks.
This is a clear sign that the Omicron variant, working from home advice and Plan B measures in England are impacting consumers’ confidence to visit pubs and restaurants.
This festive period was seemingly going to be a busy one as late as last Saturday, with London business only seeing a 9% decline for the same period in 2019, but the last week has seen a dramatic tail-off.
The sector has asked for an extension of the discounted 12.5% VAT rate to stretch beyond March 2022, and for business rates due in the first quarter of next year to be deferred.
Aim-listed City Pubs said yesterday it would be closing the doors on its City-based pubs a week earlier than usual as it expects the Square Mile to be deserted next week.
Boss Clive Watson told the Standard sites across the capital will close this weekend, with bar staff from central London establishments to be redeployed to suburban areas where trade has generally held up.
A shortage of staff, which has hampered the industry all year, has been exacerbated by Omicron, with new daily cases reaching record highs.
High street retailers are also being affected, with destination department store Harrods starting its Boxing Day sale ten days early.
Footfall in central London is reportedly 30% lower than pre-pandemic levels, despite November seeing retail sales grow by 1.4%.
This has sparked fears that a late Christmas shopping surge may not materialise, a big hit for sector that was relying on a boost to spending.
Danni Hewson at AJ Bell said, “December’s already shaping up to be a very different story. Footfall is down dramatically and there will be some consumers deciding what they don’t have now they won’t be buying.”