Over 7,000 licensed premises still in limbo following 'freedom day'

By Michelle Perrett

- Last updated on GMT

Sales stats: trading figures are now at the highest since the pandemic began, CGA business unit director for hospitality operators and food, EMEA Karl Chessell said (image: Getty/ SolStock)
Sales stats: trading figures are now at the highest since the pandemic began, CGA business unit director for hospitality operators and food, EMEA Karl Chessell said (image: Getty/ SolStock)

Related tags: Legislation, Cga, Late-night bar operator, Managed pubs


More than 7,000 licensed premises are in limbo, not yet reopening after last month's 'freedom day' and not yet permanently closed, the latest Market Recovery Monitor from CGA and AlixPartners has revealed.

It said that while it is expected that some are still planning their restart or are waiting for trading conditions to improve – especially in Scotland and Wales, where restrictions were lifted later than in England – others are unlikely to open again.
The Market Recovery Monitor​ revealed that just under 5,000 of Britain’s licensed premises opened their doors again in July to bring the sector to more than nine-tenths of its capacity.

This wave of reopenings was partly triggered by ‘freedom day’ in England on Monday 19 July, which allowed many venues, especially nightclubs and late-night bars, to trade for the first time since March 2020.

Across Britain, 98,790 licensed premises were open by the end of July – 93.0% of the total known sites, it said.

Sharp contrasts

The report highlights sharp contrasts between sectors of the hospitality market, including a stronger reopening for eating venues than drinking ones - 98.1% of food-led licensed premises were back trading by the end of July, compared to 91.4% of drink-led sites.
 
Managed restaurant, pub and bar groups are returning at a faster pace than independents with 98.7% of managed sites now open – significantly higher than the 89.9% of independently run venues.
 
The new Market Recovery Monitor revealed that Britain’s total licensed premises plunged by more than 9,000 between Spring 2020 and 2021– 8.1% of the pre-Covid total, and equivalent to one net closure every hour.

However, total site numbers have edged up slightly in the past two months, indicating confidence and investment in the sector are starting to return, it said.

Promising start

“It’s very promising that well over nine in 10 venues are back open again. Trading numbers are now at their highest point since Covid-19 hit, and a modest but steady flow of new venues suggest that the worst of the crisis may now be behind us,” said Karl Chessell, CGA’s business unit director for hospitality operators and food, EMEA.  

“However, with so many sites yet to reopen, more business failures are inevitable. Thousands of businesses remain vulnerable, and their future will now depend on how well they can overcome major challenges such as the high debt levels many have. Consumers are returning to the sector and the pent-up demand is favourable, so getting through the early stages of the recovery is critical for these businesses.”
 
Graeme Smith, AlixPartners’ managing director, said: “The long-awaited freedom day marked the beginning of a new chapter for hospitality with the focus for operators now shifting to securing a return to viability after almost 18 months of closure and heavily restricted trading.

He added; “The well-publicised challenges in the market around labour and product supply only add to a complex picture during what should be peak trading season, with operators across the country taking drastic action through reducing their hours or closing as a direct consequence of these issues.” 

Related topics: Legislation

Related news

Show more