A new survey has revealed that 37% of hospitality venue owners are ‘undecided’ about whether to exit or close down their businesses due to Covid-19.
The new research gathered from 350 pub, hotel, restaurant and café owners by Armstrong Watson LLP, highlighted the concerns of business leaders for the future of their companies.
According to the survey, 35% of businesses expect to make redundancies before the end of October and 32% are still deciding.
70% say their exit plans have now ‘significantly changed’.
The findings showed that 80% of businesses took advantage of the Job Retention Scheme and 56% think the phasing out will ‘put their business under significant financial threat’.
80% believe that cash flow will be a major issue for their business over the coming winter months, as the furlough scheme draws to a close and trading naturally slows.
Commenting on the survey findings, Richard Andrew, Partner and Armstrong Watson’s Head of Hospitality said: “It is incredibly worrying that the results suggest many business owners are reconsidering their exit plans and the future of their businesses. Whilst government initiatives such as Eat Out to Help Out, loan schemes and JRS have helped sustain businesses during the past few months, with further restrictions soon to come into force and Government schemes ending, unfortunately pressure upon these businesses is likely to increase.”