Hospitality trade set for bleak New Year, says Begbies Traynor
Insolvency and pub trade experts in Leicester are predicting that distress in the beleaguered pub and hotel sector will “rocket” in January. According to business recovery specialist Begbies Traynor, weeks of poor weather will result in businesses losing a large portion of their most lucrative month’s takings.
The insolvency team at Begbies Traynor said that the extreme weather conditions in parts of the UK will cost some businesses up to two weeks of their earnings.
John Lowe, partner at the firm’s Leicester office, said that the “double whammy” of tightening consumer belts and severe weather problems have left thousands of pubs, restaurants and hotels counting the cost of missed Christmas parties, reduced local trade and cancelled business travel.
He said: “The hospitality sector has seen falling revenues and rising prices over the past few years, and with business borrowing difficult to secure in the sector, the missing revenues will be the final straw for some hospitality businesses, both small and large.
“Although some local community pubs have seen an uplift in trade as people unable to work enjoyed impromptu daytime get-togethers with friends and neighbours, the majority of rural pubs, town centre venues and restaurants have suffered, and some venues have seen takings slashed by 90 per cent, losing tens of thousands of pounds of much-needed revenue.”
