The hospitality sector has issued a fresh plea for financial help from the government as it warns Omicron has already led to plummeted sales and “decimated” bookings.
Speaking to the BBC Greene King (LSE:GNK) chief executive Nick Mackenzie says the spread of Omicron has already ruined what was supposed to be the busiest weekend of the year for pubs and restaurants.
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“Demand has dropped, bookings have been decimated, some parts of the country we are 70%, 80% down on 2019, so the situation is pretty unsustainable.”
Reports this afternoon suggested that PM Boris Johnson had decided against introducing new restrictions before Christmas, but this will be little comfort to pubs and restaurants that have already started to close because of fear over the new strain of the virus.
Mackenzie has called on Chancellor of the Exchequer Rishi Sunak to deliver quick and urgent support to the industry.
He added that hospitality businesses that will be most impacted by the restrictions require a range of measures to ensure they survive, such as the reintroduction of the furlough scheme and a reduction in VAT.
Restaurants and pubs in and around city centres, in particular London, are being hit hardest by the Omicron variant, as commuters become wary of travelling into bustling urban areas.
Fulham Shore’s chairman David Page also told BBC Radio 4 that sales in city centre restaurants fell last week, although that was somewhat offset by an increase in sales in sub-urban areas and the south coast.
Shares in hospitality business bore the brunt of a sell-off in London today as investors fretted some would struggle to survive in January and February without the traditional buffer of Christmas takings.
Even the giant firms were affected with contract caterer Compass down 1.5%, events group Informa off 4.8% and pubs group Mitchells & Butler down 1.3%.