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CGA REPORT 03.03.21

Date Posted March 3rd, 2021.

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We are pleased to advise members that they can access the latest market recovery report on the Foodservice market.

CGA Key takeaways are:

  • While 4,170 new sites have been recorded since December 2019, the loss of nearly 12,000 venues means there have been nearly three closures for every fresh opening—leading to a net loss of 7,724 licensed premises. The number of permanent closures is expected to rise sharply, with the effects of trading restrictions—including a catastrophic drop in trade over the key month of December
  • While the sector now has a roadmap to reopening, research for the MRM suggests that the freedom to trade outside from mid-April will be of limited benefit. Less than half (43.2%) of England’s pubs, bars and restaurants have an outdoor area of some kind, and while the number is higher among food pubs (78.4%), it is far lower among casual dining restaurants (11.4%)
  • The MRM also reveals that the food-led sector has been hit harder by COVID-19 than the drink-led market, losing 7.6% and 5.5% of total sites respectively. The casual dining sector has contracted by 15.8%—equivalent to more than 1,000 casual dining restaurants, or nearly one in six of the total, shutting their doors since December 2019
  • Many city centres have proved more durable than expected, with central Sheffield, Liverpool, Edinburgh and Nottingham all seeing fewer than 3% of their licensed premises close since December 2019, whilst central London has seen a below-average 6.3% decline. It provides optimism that major cities may rebound quickly when the hospitality sector is able to trade again

 

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