More than 90 chief executives from pub and bar companies including Greene King, Fuller’s and Beds & Bars have signed a letter to Boris Johnson and Sadiq Khan, urging “clear, consistent messaging to give assurance and diminish fear”.
London has not fared as well as other areas in rebuilding trade amid the coronavirus crisis and faces an estimated drop in international tourism spend of £12bn according to Visit Britain’s latest forecast for inbound tourism to the UK in 2020
What’s more, just one in three (34%) of UK white-collar workers have gone back to work, according to analysis from US bank Morgan Stanley’s research unit AlphaWise, with London commuters particularly hesitant.
The Government has targeted these workers in a new publicity campaign, which will make “the emotional case” for encouraging office work above working from home and reassure workers on safety concerns.
Downward spiral
The 90 hospitality leaders have asked for a round table discussion between operators, the Government and City Hall.
Their letter said: “Only a coordinated approach that puts politics to one side and focuses on building confidence will deliver the strong and desperately needed message that London is open for Londoners, commuters and leisure visitors. The current speed of progress in conveying that message will see businesses fail and the triggering of an economic downward spiral.
“We urge you to work with us on an ambitious and strategic plan of action to secure London’s future and a safe return to growth.”
UKHospitality chief executive Kate Nicholls described the capital as at a “very real risk” of lagging behind the rest of the country and even international equivalents in its economic recovery.
Bleak case
Nicholls explained: “Around the country, life is beginning to return to some degree of normality. People are returning to work and hospitality businesses are slowly starting to bounce back from a disastrous few months.
“The case is much bleaker in London. Some businesses are struggling to hit double figures and the reality is that businesses are going to fail, with the associated job losses, if nothing is done.”
Mass job losses could be on the horizon according to Nicholls, with hospitality and tourism businesses, retail, leisure and supply chain businesses together making up 20% of all employment in London.
An exodus of commuters from London has been a concern of operators for a while.
Fuller’s boss Simon Emeny shared his concerns about the pandemic's impact on the capital's "eco-system" with The Morning Advertiser's (MA) editor Ed Bedington earlier this summer, saying his business had relied heavily on commuters.
"We need to create an environment where we are giving people permission to go back out again and enjoy the delights that London as a capital city has," Emeny said. "Until that happens, whether it is in pubs, restaurants or cafes, it is going to be very difficult for people to contemplate opening in central London."
The disparity between the capital and other parts of the nation was made clear in statistics released last month that showed the Government’s discount meals initiative had one of the lowest impacts on footfall in London compared to other areas.
