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The UK government has decided to implement a tighter tier system from this week after the second lockdown gets over on 2 December. The new tier system, which will be in place from 3 December, is being introduced as the risk of a sudden spike still exists. A new survey has suggested that the new tier system will stop 98 per cent of England's hospitality sector ahead of the festive system, which would cost it around GBP 7.8 billion.
In Europe, the UK is the most affected because of the pandemic and many of its sectors have badly suffered due to economic uncertainty. The survey of around 2,000 adult Brits was carried out by Jobs site Caterer.com, which shows that people are very excited to return to hospitality venues after staying indoors for about four weeks. The pent-up demand for meals and drinks would have given as much as GBP 15.9 billion to the UK economy.
The report suggested that if the hospitality industry was permitted to function completely, 25 per cent of Brits were ready to spend a whopping GBP 5.1 billion on food and a further GBP 5.1 billion on drinks. One-fourth of Brits who responded to the survey said that they planned to spend more at the hospitality venues around Christmas.
The Caterer.com survey stated that the already affected hospitality industry could have received a much-needed festive boost with the customers wanting to return to their favourite joints. But now, the majority of the sector is predicted to face tougher situations amid the tighter tier system.
Neil Pattison, spokesman of Jobs site Caterer.com, said that the survey undertaken clearly specifies that the people in the UK are eagerly waiting to go back to hospitality venues and enjoy. The tier system will lead to a multi-billion pound loss and would also affect the jobs.
Also Read: UK tier system: How badly will it impact the pubs?
Division Under the Tier System
The Boris Johnson government has announced that the hospitality businesses in tier 2, where alcohol can be served only with a “substantial meal”. In tier 3, all pubs, restaurants and cafes will be closed, and they can only operate as delivery or takeaways. Besides, the pubs and restaurants can take orders only up till 10 pm; people can sit there and hang out till 11 pm. Earlier, the closing time was 10 pm.
For pubs, around 16,454 pubs will remain closed in Tier 3 zones, while in Tier 2, 13,920 pubs will be closed because most of them don't serve substantial meals as per the new regulations.
Emma McClarkin, Chief Executive of BBPA, said that 99 per cent of the pubs are in Tier 2 or 3 zones and the government has to act fast to avoid mass destruction of the business segment.
Industry Reactions
Restaurant and bar owners have expressed their unhappiness and discontent over the new restrictions. Business owners have said that the government has been unfair and should have given them a chance to show their preparedness to handle the situation.
Kate Nicholls, Chief Executive at UKHospitality, said it is known that the hospitality sector plays a crucial role in rebuilding the economy. The government needs to adopt a lucrative strategy that suits everyone as the hospitality businesses are being targeted unjustifiably and unfairly.
Hugh Osmond, Founder of Punch Taverns, said the restriction measures were too harsh and the disruption caused to the hospitality industry will have widespread effects and will spread poverty, increase health problems, suicides, deaths, and much more.
