Top news from the week

‘Hospitality will be among last areas to open’, cabinet minister confirms​​

Cabinet office minister Michael Gove said hospitality would be one of the last business sectors to reopen when lockdown measures are relaxed.

Appearing on the BBC’s Andrew Marr Show ​last weekend (Sunday 19 April), Gove confirmed the Government’s plans around exiting lockdown.

Marr said it was clear the Government had a lot to do until there could be discussions about a general easing of restrictions and he asked if pubs, restaurants and hotels would be opening before winter.

Gove replied: “I think, again, it’s entirely understandable that you should ask this question but we want to make sure we make a balanced judgment about which restrictions can be relaxed at what time.

“You’re quite right to say that we have stressed the reporting in today’s (Sunday 19 April) newspapers that schools will open on 11 May, that is not true, we have not made that decision.

“The other inference I draw from your question, which is that areas of hospitality will be among the last to exit the lockdown, yes that is true, they will be among the last.”

This prompted trade bodies to respond, outlining how the Government needs to act fast with further support for the industry.

UKHospitality chief executive Kate Nicholls said hospitality faced a unique problem as all businesses are built around socialising.

British Beer & Pub Association chief executive Emma McClarkin called on the Government for extra support for pubs to help ensure their survival.

Licensees despair over ‘no communication from billionaire pubco owners’​​

Wellington Pub Company licensees have told The Morning Advertiser​ of their concern about the pub group’s lack of communication amid the Covid-19 pandemic.

Prime Minister Boris Johnson told pubs to close​​ on Friday 20 March, after he called on the public to avoid visiting them​​ earlier on that week (Tuesday 17 March).

Wellington Pub Company, which has more than 700 pubs, is owned by the Reuben Brothers and managed by Criterion Asset Management. In May 2019, The Sunday Times Rich List ​​estimated the family had a net worth of £18.66bn.

What could the easing of coronavirus lockdown around the world mean for UK pubs?​​

The Morning Advertiser ​takes a look what hospitality businesses overseas have been doing amid lockdown and the countries that have began easing restrictions.

The majority of Ireland’s pubs closed just before an official shutdown was implemented on 15 March, and will remain in place until at least 5 May.

“The Licensed Vintners Association and Vintners Federation of Ireland outlined the real difficulty in implementing the published guidelines on social distancing in a public house setting, as pubs are specifically designed to promote social interaction in a situation where alcohol reduces personal inhibitions,” a Government statement on 15 March explained.

French president Emmanuel Macron said France would start to lift lockdown measures on 11 May. He also said while hospitality businesses would remain shut for longer – with none expected to open before mid-July at the earliest – he said specific aid will be provided to businesses in the hospitality, tourism, culture and events sector in the meantime.

There are no clues as to when Italy’s pubs and bars will reopen at present and a similar sentiment can be said for Spain.

Sweden’s hospitality venues remain open but subject to tight restrictions to limit spread of the virus. Denmark has stated its hospitality businesses could open in mid-May but the Danish government said if cases start to increase again, it will reimpose measures.

Two-and-a-half months after the pandemic began, China has lifted lockdown in Wuhan with a number of the country’s bars and restaurants resuming with a number of safety measures in place.

New Zealand’s bars, restaurants and schools closed two days before the full lockdown was imposed on 26 March.

Hospitality NZ has stated it is working on a technological solution to help its pubs meet the requirement to maintain a guest register when they eventually reopen. However, the sector body is waiting to see whether the government’s work on a contact tracing app supplement or supersede its own plans.

Across the Tasman Sea, Australia closed its pubs and restaurants on 22 March as part of lockdown restrictions.

In the US, on 16 March, president Donald Trump urged citizens to avoid eating and drinking out, the decisions to shut bars and restaurants were made on a state-by-state basis – with some moving to introduce restrictions quicker than others. 

Marston’s granted Covid-19 funding agreement waiver​​

Marston’s has secured a waiver from its financial backers to avoid a breach of loan repayments during the Covid-19 shutdown.

The waiver issued by HSBC applies to Marston’s cessation covenant and means the Wolverhampton-based operator of around 1,400 pubs will be able to fully suspend its business for 30 days without defaulting.

This will apply until 29 May initially but an automatic extension may be triggered until 15 June in “certain circumstances”.

How much time is needed for pubs to reopen?​

The pub trade needs notice of at least three weeks, but ideally four, to give sufficient time to reopen, one industry body has said.

The British Beer & Pub Association (BBPA) has outlined a planning process in a bid to help the trade get started again once the “immediate Covid-19 crisis has passed”.

Brewers also need the same time period to scale-up brewing operators to begin supplying pubs and the on-trade with fresh beer again.

This period of time would also mean pubs can give sufficient notice to furloughed staff that they need to return to work as well as ensure equipment and systems are up and running, cleaned to the required standards and organise cellars including the replacement of beer.

However, this would need some relaxation of social distancing measures ahead of a full reopening so clearance crews can operate efficiently.