Thousands of UK bars and pubs closed in 2020
United Kingdom | Over the course of three nationwide lockdowns and various coronavirus restrictions, Britain lost around 6,000 pubs and licensed premises in 2020. This is nearly three times as many as in 2019, according to the Market Recovery Monitor by consultants CGA and business advisory firm AlixPartners.
In fact, a total of 9,930 sites were shuttered, but with just under 4,000 opening for the first time, the loss was only 5,975, or 5 percent of the total, the report, released on 22 January 2021, said.
Emma McClarkin, Chief Executive of the British Beer & Pub Association, commented: “These figures show what a devastating year 2020 was for pubs. Our sector is far from out the woods yet, though, and it continues to fight for its very survival through the pandemic in 2021. We fear things could actually get much worse before they get better for our pubs and brewers.”
Independent, smaller pubs and restaurants were hit hardest. They could not cope with the lockdowns because they had no big savings, could not get loans from the bank, or tap into the capital market. The dry spell is becoming too long for many.
The first lockdown lasted for more than three months in spring, from late March to early July. In many regions, initially in northern England, hospitality venues had to close again from November, due to rising numbers of infections. Currently, restaurants are only allowed to offer take-away meals.
Major job losses
Already 640,000 jobs have been lost, according to estimates by HospitalityUK, a trade body. Before covid-19, the hospitality industry employed more than 3 million people. In fact, 2021 could prove another devastating year despite government aid.
In 2019, there were around 40,000 pub businesses in the UK. Almost a third of the pubs are run by large pub companies, among them listed firms such as J.D. Wetherspoon, Young’s, Fuller’s, Marston’s, City Pub Company and Mitchells & Butlers, plus several privately held ones.
Since the outbreak of the coronavirus, the major pubcos have raised several billion pounds through loans, capital increases and bonds.
Incidentally, Greene King’s previous executive, Rooney Anand, is already placing his bets on a speedy recovery of the sector. Reportedly, Mr Anand has secured GBP 200 million (USD 275 million) in investment from US private equity to make a number of acquisitions in the coming months. His investment vehicle, Redcat Pub Company, will focus on smaller acquisitions rather than large corporate deals.
