Most operators need rent reduction of at least two fifths over next six months

By Nikkie Thatcher

- Last updated on GMT

Financial help: respondents in the latest poll were asked on how much they needed rent to be reduced by in order to operate
Financial help: respondents in the latest poll were asked on how much they needed rent to be reduced by in order to operate

Related tags: coronavirus

The majority of operators need a minimum 41% rent reduction in order to trade for the rest of this year, new data has found.

A weekly poll by HIM/MCA Insight, a division of The Morning Advertiser​​​’s parent company William Reed Business Media, revealed that 11% of operators said they would need rent to be reduced by between 21% and 40%.

When asked the minimum rent reduction or support they could operate with over the next six months, 35% of respondents said they would need a 41% to 60% cut.

Some 16% said they would need a reduction of between 61% and 80% to be covered while 15% said an 81% to 100% reduction would be required.

Staff plan

However, 21% of respondents said they wouldn’t need any rent reduction or support to operate over the coming months.

In terms of staffing, the poll also found that a fifth (20%) of operators are predicting they will need to let 21% to 50% of their staff go when employers are asked to contribute towards the furlough scheme.

More than a quarter (29%) said it was difficult to tell right now, while 3% predicted letting all (100%) of staff go and 12% forecast more than half (50%).

Furthermore, 13% of respondents said the introduction of contributions to the scheme would have no impact on them and they would be able to pay.

Looking ahead

Meanwhile, operators are expecting customers to be looking for value amid lockdown restrictions easing with 47% of those surveyed saying this.

More than a fifth (22%) expected customers to continue to look for previous offers and 31% think consumers will still look for premiumisation of hospitality experience and offer, as before the coronavirus pandemic.

Poll respondents included 463 founders or board level operators across pubs, restaurants and the food-to-go sector.

Related topics: Other operators

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