Dozens of pubs, bars, cafes and restaurants in Cheshire may never open again because of the crippling COVID-19 crisis, a survey suggests.
Taste Cheshire says 40% of companies it surveyed indicated they would be unable to open again if the lockdown was lifted on June 20, three months after it was imposed.
The Food and Drink industry body in Cheshire issued a stark warning after surveying 100 of its members and related businesses.
The survey shows just over half think they may be able to open but were uncertain what would happen after that time.
Only 2.5% were confident of re-opening at all.
Stephen Wundke, Taste Cheshire CEO, has been involved in the industry for more than 30 years and believes this is the toughest time it has ever faced.
“Reading through both the figures and comments from our survey was incredibly sad,” he said.
“Cheshire has about 1,500 establishments that employ 25,000 people, representing a huge part of Cheshire’s success as a destination.
“This sector has been hit, disproportionately, incredibly hard.
“Our figures show 65% have already reached agreements with their suppliers not to pay them until they are able to re-open.
“And a staggering 87.5% needed to get their landlords to agree a payment holiday on their rent, just to survive.”
82.5% have been able to furlough staff, 12.5% are still paying full wages and 7.5% have needed to make people redundant.
Less than half managed to get one of the government grants and not one of the businesses who had applied for a government backed loan had been successful.
The survey showed that 64.5% would have less than 50% of their normal stock remaining.
“This is a huge issue,” Wundke added.
“When we re-open, everyone will be trying to get stock from suppliers and producers at the same time and many people are already at the limit of what they can pay for.
“Suppliers will be understandably reluctant to offer more credit when they too have seen no income.
“Most staff will also want to return to work which is not as big a problem, but cash starved businesses must find a way to pay wages after furlough finishes.
“In the weeks after bringing staff back and before reopening, they will have to train them to follow new operating procedures and how will they fund that training period? I fear this will just be too much for some.
“We are at a precipice for the industry, which, without further and direct help, could crumble.”
Taste Cheshire is working with Cheshire & Warrington Local Enterprise Partnership and Marketing Cheshire, to get the industry back on its feet.
They are asking for a restocking and re-staffing grant that would see a typical business that turns over £400,000 a year getting, on average, about £12,000 as a grant to assist.
Most businesses surveyed believe they could get things going again with a grant of that size.
Across Cheshire and Warrington, Taste Cheshire estimates this would cost central government about £18 million.
Taste Cheshire also recommends re-opening plans with social distancing in mind that include table service only, all tables two metres apart, a door person to ensure safe access and toilet monitors to ensure no unsafe practice.
The Taste Cheshire survey also revealed 17.5% of businesses had found a way to deliver or provide take away food but the remainder 82.5% had no income at all since March 20.
(Image by Joe, creative commons, for display purposes only)
