Business

Pub and restaurant owners call for more government help following reopening

Pub owners were allowed to reopen sites in England on July 4
PA
Joanna Hodgson
7 July 2020

Pub and restaurant operators in the capital have welcomed encouraging trading after reopening over the weekend, but called on Chancellor Rishi Sunak to give more help to the sector.

Sunak is due to unveil a package to boost the economy on Wednesday, and the ailing hospitality industry wants a string of measures including a temporary cut in VAT to boost spending.

Elton Mouna, managing director of Remarkable Pubs, which has 15 London venues, said: “We traded briskly and responsibly. The hospitality sector is relying on Rishi Sunak to help us keep the momentum going. He can do this by authorising a temporary cut in VAT.”

Ranjit Mathrani, chairman of Masala Zone parent MW Eat, said Sunak needed to “protect jobs, by providing a route to fund a return to part-time work with full furlough for longer for hospitality firms and double the employer National Insurance Contribution threshold".

Mathrani had a number of other suggestions the government could look at to help companies, including extending the business rates holiday for firms in the hospitality sector.

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Patrick Frawley, founder of East London Pub Co, said: “Sales are about 40% of what we usually do and I think we did well to achieve that. Additional staff and security are required to operate within the guidelines which won’t be sustainable even in the short term.”

He said more government help will be required, including a VAT reduction.

Des Addis, general manager at Hard Rock Cafe Piccadilly Circus said weekend booking and sales met expectations.

He added: “We are encouraged, however we must be pragmatic in these uncertain times. We understand footfall will be substantially lower than prior years. Hard Rock Cafe is a one-of-a-kind entertainment destination, we continue to remain focused on how we can grow, be industry leaders in safety measures, and improve to offer our guests a memorable experience."

Addis added: "While we wait to hear of specifics of the recovery package, we fully support the Chancellor's plans to get the economy up and running. We hope the government restores the confidence of patrons going back out, whilst adhering to safety measures.”

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