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Summary
- Hospitality industry body, British Beer & Pub Association said the sector faces about £400 million in losses due to a delay in lockdown reopening.
- The UK government announced a delay in the final phase of its lockdown restrictions from 21 June to 19 July due to a rise in Delta variant cases.
- The government said it would not continue its furlough and other support schemes for the sector despite the delay in reopening.
The pub sector is set to experience additional financial losses after the UK government announced it would delay its final lockdown easement from 21 June to 19 July due to the rise in cases of the Delta variant.
According to industry body British Beer & Pub Association, the delay will cost the sector up to £400 million in losses during this period. It will also erode confidence in the sector since a significant part of the summer season will be lost, which is a critical period for the viability of the industry.
The government also confirmed it would not extend furlough and other such support schemes for the sector despite the delay in reopening. Industry leaders called for government support until businesses can fully open.
In this article, we take a look at 3 FTSE 250 listed stocks and how they performed following the news:
- RESTAURANT GROUP PLC (LON: RTN)
FTSE 250 listed restaurant company the Restaurant Group today announced the permanent closure of one of its restaurants, the Coast-to-Coast American Restaurant & Bar, amid the pandemic induced adversity.
The company had previously announced in 2020 that a large number of its restaurants were unlikely to reopen and that several of its Frankie and Benny’s locations would not be viable for trading. Restaurant Group is also the owner of popular food joints Wagamama, Frankie and Benny’s and other restaurants.
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RTN’s shares were trading at GBX 126.40, up by 2.43 per cent on 15 June at 09:10 HRS GMT+1, while the FTSE 250 index stood at 22,783.14, up by 0.17 per cent.
RTN’s market cap stood at £944.06 million, while the year to date returns stood at 98.97 per cent.
Also Watch: What Is the Long-Term Future of Restaurants in the UK?
- J D WETHERSPOON PLC (LON: JDW)
Another FTSE 250 listed pub chain Wetherspoon, announced on Monday that its pub located in Carmarthen is set to close for over four months to create a huge outdoor terrace on its roof worth up to £1.9 million later in the year.
The move aims to provide more space for a beer garden experience due to current social distancing norms.
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JDW’s shares were trading at GBX 1,241.00, up by 0.32 per cent on 15 June at 09:51 HRS GMT+1, while the Travel and Leisure Sectoral Index stood at 8,758.27, up by 0.22 per cent.
JDW’s market cap stood at £1.592 billion, while its year-to-date returns stand at 11.47 per cent.
- Mitchells & Butlers Plc (LON: MAB)
FTSE 250 listed, Mitchells and Butlers is one of the largest pub chains in the UK. The company has been ordered to pay up to £90,000 in fines after it was blamed for letting large amounts of oil and fat into the Oxfordshire Thames Water sewer network.
It is the owner of several restaurants and pubs, including Miller & Carter, Toby Carvery and Harvester.
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MAB’s shares were trading at GBX 300.80, up by 0.47 per cent on 15 June at 10:09 HRS GMT+1. Its market cap stood at £1.785 billion, while the year to date returns are at 38.58 per cent.
Also Read: A Look at Restaurant Group and Mitchells And Butlers as UK Unemployment Rate Fall
