50% of operators to make redundancies once furlough ends

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Research group: the poll surveyed 173 board-level employees across the hospitality sector

Half of operators have warned they will have to make redundancies when the furlough scheme ends next month (October).

The latest Hospitality Leaders Poll carried out by Lumina Intelligence for MCA asked the 173 business leaders if the cut off date will force them to make redundancies and 10% answered “substantial”, one in five said “moderate” and another 20% said “minor”.

Some 38% of operators will not need to make workers redundant, while 11% were undecided on what to do.

Mass unemployment

Talking about the end of the scheme, British Beer & Pub Association (BBPA) boss Emma McClarkin told The Morning Advertiser if the Government does not extend the Coronavirus Job Retention Scheme to the trade, it must offer further financial support or see mass unemployment.

She also outlined what the organisation would be fighting for in the Autumn Budget, including a business rates relief extension as well as further tax cuts.

Meanwhile, the Hospitality Leaders poll also asked if respondents would be able to pay the latest installment of rents in full at the end of the quarter.

Confidence levels

Answers were relatively split with just over half (55%) saying they would be able to pay but 45% would not.

The multi-site operators were also asked for the percentage of sites currently open and three quarters (75%) said less than a fifth.

Some 12% said between a fifth and a third of their sites were open, 8% said 30% to 40% of their venues were trading, 2% said 40% to half and just 3% had reopened more than half of their sites.

The tracker has been following operators’ levels of confidence and in the latest results, the levels of confidence fell from 77% last week to 67% this week