Report predicts permanent closure of 22% of the hospitality sector, with economic recovery taking until 2025, and urges the government to maintain support in order to save jobs
A new report by FutureFoodService forecasts a £10 billion fall in revenues for the hospitality and food service sector in 2021, 10% less than 2019, and claims that real economic recovery may take until 2025. The report also predicts that 22% of all hospitality outlets will not be open by the end of 2020, as the financial impacts of the pandemic could force many out of business. A combination of reductions in both frequency of visits and spending by customers and lower margins due to potential supply issues will, the report claims, make business simply unviable for many. Worst hit will be city centre operators, with contract catering and local businesses more able to survive the crisis. It urges the government to maintain support for the industry, and for the sector to embrace technology as part of its recovery.
View our COVID-19 tracker in full.