- Pubs in several cities across the country have been forced to shut down due to the heatwave.
- Hospitality businesses are already facing the heat of the high cost of living that has forced people to cut down on discretionary spending.
Hospitality businesses in the UK are already struggling due to the cost-of-living crisis as people are cutting down on discretionary expenses. However, that is not the only problem these businesses, especially pubs and restaurants, are facing right now. The weather is also adding to their woes as the heatwave has forced several of these businesses to close their doors.
According to reports, footfall at pubs plunged by almost 20% on Monday morning in central London as people decided to stay indoors. As a result, several pubs chose to remain closed.
Several employees had complained that kitchens in these pubs get very hot, and the businesses wouldn't want to risk their employees. He added that many pubs do not have the cooling equipment required during such weather conditions.
Notably, pubs are already seeing less footfall as people continue to work from home. As per the recent data from the Office for National Statistics (ONS), about 30% of employees are working from home.
In the wake of this, let us explore some FTSE-listed hospitality stocks.
Restaurants Group Plc (LON: RTN)
Listed on the FTSE All-Share index, Restaurants Group operates about 400 restaurants and pubs across the UK. The company recently acquired Mexican-style fast-casual restaurant chain Barburrito Group Ltd for £7 million. The year-to-date return also stands in the negative territory at -49.10%. With a market cap of £353.76 million, the shares were trading at GBX 48.00, up 3.81% as of 3:22 pm GMT+1 on Tuesday.
Marston's Plc (LON: MARS)
Marston's Plc has around 1,500 pubs in its portfolio that operate in the UK. The company has a market cap of £296.65 million, and its shares were 1.67% higher at GBX 47.56 as of 3:24 pm GMT+1 on 19 July 2022. The stock value has depreciated by over 41% over the past one year. The earnings per share too stands in the negative zone at -0.57.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.