The threat of more than 100 riots across the country has had a significant impact on the hospitality industry, resulting in a 10% decrease in sales, according to a report by UKHospitality, a trade body representing over 130,000 venues.
Last Wednesday, there were widespread expectations of further far-right violence, which failed to materialize after more than a week of rioting. However, the fear of potential unrest led many shops, pubs, and restaurants to close early, causing town centers to empty out.
In areas where police anticipated riots to occur, the impact was even more severe. Data from UKHospitality shows that sales were down by as much as 40%, with footfall declining up to 75%. These figures were described as “startling” by UKHospitality’s chief executive Kate Nicholls.
Both city centers and coastal towns were affected by the decrease in sales as people were instructed to work from home and events and trips were cancelled. On the other hand, areas outside of towns, such as retail parks, saw a modest increase in visitors, according to footfall data from real estate software company MRI Software (formerly known as Springboard).
MRI Software also reported that shopping centers experienced a decline in footfall on all days except Tuesday. The regions most impacted by the decrease in sales were the northern parts of England and Yorkshire, the East Midlands, and the West Midlands.
During this time of year, with the school holidays in full swing, MRI Software expected to see higher visitor numbers across the board. However, the recent events have caused a significant decrease in footfall.
In light of the impact on small and medium enterprises (SMEs) caused by the riots, Sky News revealed on Friday that Britain’s most influential small business group had urged the home secretary to provide swift support for affected businesses. This call was supported by business secretary Jonathan Reynolds, who also called on insurance companies to act promptly in helping businesses recover.
UKHospitality represents a wide range of businesses, including pubs, bars, restaurants, hotels, indoor leisure facilities, and contract catering businesses. The recent decrease in sales and footfall has had a significant impact on the industry, and the effects are likely to be felt for some time to come.
