Hospitality Re-Opening Week Sales Figures

Hospitality Re-Opening Week Sales Figures

Hospitality like-for-like sales up 9.1% but 45% of sites remain closed resulting in total sales decline of 25%.
 
According to an analysis of more than 150 organisations that use S4labour’s workforce management software, sites that were open during the first week of a relaxation in rules, had strong sales, with like-for-likes up 9.1% compared to the same week in 2019. However, the analysis of the figures reveals a mixed and complex picture, with 45% of open sites trading at 90% or worse than 2019 of sales in same week in 2019.
 
In addition to this, 45% of hospitality sites were not open at all last week, resulting in an overall decline in hospitality sales of 25% compared to the same week in 2019.
 
Operators able to open, benefited from significant pent-up demand and weather conditions that, despite starting with a scattering of snow Monday morning, were generally dry and mild. The research suggests that the general public in England were keen to return to the beer garden for a drink, with open wet-led sites boosted by a 13.2% uplift in sales compared to the same week in 2019, while open sites that are food focused seeing an uplift of 7%.
 
Chief Product Office, Richard Hartley commented “with 45% of sites closed and only half of these sites able to trade at an equal or better level than 2019, these figures on re-opening week are far from a waving flag of success for current restrictions, rather an indicator of significant lost potential for operators.
 
S4labour’s Chief Customer Officer, Sam Wignell, added that “achieving 9.1% growth under trading restrictions that significantly reduced capacity to outside only, as well as the length of the trading day, is an indicator of what could have been for the industry. Those with outside space were able to capitalise on pent-up demand and many had a very successful week, but this will naturally dissipate as time goes on, further hitting those penalised for not having outside space.

9 Things To Know About The New Tax Year

9 Things To Know About The New Tax Year

Personal Tax Allowance

Personal Tax Allowance change from £12,500 to £12,570; basic rate 20% bandwidth £1 to £37,700.

Furlough Extension

 New employees on RTI submission before 2nd March 2021 are eligible for furlough from 1st May 2021.

Furlough Contribution

From 1st July 2021 you will need to pay 10% (or 1 eighth) of the 80% furlough amount. From 1st August 2021 you will need to pay 20% (or 1 quarter) of the 80% furlough amount.

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 1,250 HMRC Operatives will investigating furlough claims.

Plan 4 - Scottish Student Loan Rate

Student Loan Plan 4 (SLP4) introduce a new STARTER DECLARATION.

NMW & NLW Changes

Applicable from pay period starting 1st April – Read More

SSP

The weekly rate will be £96.35, or an unrounded dayrate of £13.7642.

SPP

£151.97 per week or 90% of average weekly earnings (whichever is lower); no change to empolyer recovery anticipated.

NI Rates

No changes
April Re-Opening Forecast

April Re-Opening Forecast

Hospitality industry forecasts 70% of normal revenue to return when outdoor service resumes on the 12th of April.

 

Analysis from S4labour indicates that hospitality operators are forecasting 70% of revenue compared to the same week in 2019 (not 2020). The figure of 70% is somewhat remarkable considering that the vast majority of capacity, i.e. inside, will be unavailable. The research is also encouraging as the sector prepares to re-open with over a week left to secure even more bookings. 

 

The figures represent only sites that are preparing to re-open on the 12th of April and it is important to note that a large number of operators either have no outside space or not enough outdoor space to make opening feasible.

 

S4labour’s Chief Customer Officer Sam Wignell, commented “the figure of 70% of revenue compared with 2019 is in line with anecdotal evidence from conversations across the sector. There has been a scramble and huge investment to prepare outside spaces for the 12th of April, however, it comes with a large dose of caution as much of the pent-up demand could quickly be washed away with poor weather.” 

 

Alastair Scott, MD of S4labour and owner of Malvern Inns who operate 3 pubs, added “we have seen an unprecedented amount of bookings in all of our sites with customers showing a clear desire to meet up and start enjoying hospitality once more”.

Covid Hits Hospitality Sales for £89 billion 

Covid Hits Hospitality Sales for £89 billion 

Covid Hits Hospitality for £89 billion 

As the grim anniversary of the beginning of the first lockdown approaches, analysis from S4labour shows that the hospitality industry lost just over £89 billion in revenue through the full year since March 23rd 2020, when the hospitality industry was first instructed to close. This is equivalent to 68.9% of annual revenue, representing an average decline of half a £million per site across the U.K. 

The data shows that while there were huge declines for both wet and dry led sites, it was drink led sites that were particularly hard hit, slipping 78.6% in like-for-like revenue compared to food-led venues where the decline was limited to 62.1%.

There was a less marked difference between London and non-London sites, however, it was noticeable that wet-led venues in the capital suffered an 84.4% decline in sales, with little opportunity to offer takeaway or delivery during almost all variation of restrictions.

Scotland fared worse than England, with a 77% loss in revenue, and wet-led pubs in Scotland were the most affected category with an 88% decline like-for-like revenue.

Chief Customer Officer Sam Wignell added, during the last year, hospitality has had its ups but the downs have been significant and scarring for most operators. The figures are starkly clear, we cannot expect the industry to simply emerge on the other side of that loss still afloat and recover, even with pent-up demand.

Important changes to NLW and NMW

Important changes to NLW and NMW

Important changes to NLW and NMW

National living wage increases have become a metronomic feature of the financial year, and while this year’s increase is nothing untypical, both Furlough arrangements and the changes in age brackets mean that the rate increase is more complex than usual. There are three main highlights to familiarise yourself with before this April’s NLW and NMW changes; the increase amount, the age bracket the increase relates to and the Furlough scheme.

Firstly, the rate change itself. On the 1st of April 2021, NLW is due to increase from £8.72 per hour by 2.2%, to £8.91. In addition, NMW is set to increase by 2% for workers ages 21-22 to £8.36, 1.7% for workers aged 18-20 to £6.56, and 1.5% for workers aged 16-17 to £4.62.

 

Importantly however, the NLW age bracket for workers will drop from 25 years old to 23 years. This is particularly impactful for an industry like hospitality where there is a high proportion of younger employees. In fact, by dropping the age from 25 to 23 it will impact the pay of roughly 10% of hospitality employees.

Whilst the increase will be welcomed by employees across the UK, they may be disappointed to learn that this will have no impact on the amount they receive whilst on Furlough. Government guidance has stated that while Furlough will continue into the summer, employees on Furlough are not subject to the increase and their furlough pay will remain based on reference periods before to the increase. However, employers will have to pay NLW / NMW for holiday pay or while an employee is on training.

This will give some businesses a conundrum on how to maximise the benefit of the Furlough and Flexible Furlough schemes when considering who to bring back to work and who to keep on the scheme. By leaving employees over the age of 25 on the scheme while bringing back younger employees, some of the increase will be held for the short term, before reaching the point of relinquishing Furlough. It is important to acknowledge that any factors concerning employees should not contravene age discrimination legislation.

Re-Opening Resources

Re-Opening Resources

Blog on Training in 2021

What does training look like in 2021? Training Manager, Lisa Dunks looks at the changing world of L&D and how S4labour are continuing to adapt.

S4labour Reopening

Checklist

An S4labour reopening to-do list! This is something you can send out to ensure your site managers have a plan for the first weeks of rotas & forecasts.

In-House Training Agenda

We have put together a template for you to go through for labour planning refresher training when your teams are back together.

Sub Us In

We can take one thing off your to-do list and train your teams for you with our bespoke training solutions starting from just £100, get in touch with Lisa to find out more

S4labour Re-Opening Checklist

White Label - Editable Version

S4labour - PDF Version