28/04/2020
KPMG comments on the impact of coronavirus
GDP will fall by 8% this year. Hotels, restaurants, pubs & cafes will see the largest drop of 30%, whilst the public sector will grow by 5%. On pubs, restaurants etc KPMG expects 'recovery to be more gradual than for the overall economy, as the threat of reinfection may keep people away beyond the lockdown period until a vaccine becomes available.' The BBPA has commented 'reopening pubs with social distancing restrictions is going to be extremely difficult. The Government are going to need to give pubs special consideration for a restart.
Re-openings
Paul UK reopens 3 London sites with 3 more to follow: Wingstop reopens two sites in London. Farmer J and MeatLiquor both open one site, in London and East Dulwich respectively: I am Doner reopens two sites in Headingley and Harrogate. Five Guys which had kept 13 sites open throughout lock-down is due to reopen another 6 sites for delivery. KFC has opened 4 more sites and Chilango 2 - all in London.
Travelodge
Travelodge has appointed advisers to oversee negotiations with its landlords as 'it scrambles to retain enough cash to survive the coronavirus lockdown' reports The Financial Times. It reports 'Travelodge did not pay its quarterly rent bill at the end of March'.
Sector leaders sign letter to the Chancellor
24 CEO and founders have signed a letter written by London Union chief executive Jonathan Downey that is to be submitted to the Chancellor Rishi Sunak, that sets out proposals for the next measures to help save businesses and protect jobs across the hospitality industry. The letter promotes a nine-month national rent payment pause for both tenants and landlords of commercial premises. #NationalTimeOut
Marstons has the funds
Goodbody leisure analyst Paul Ruddy has said Marston's has the necessary funds to continue paying bondholders despite confirming it has secured a "precautionary" waiver according to Propel. "At year end FY19 it had £1.4bn of net debt and an undrawn £120m revolving credit facility so bondholders will continue to be paid."
Greene King are to hold one to one discussions with tied Tenants
Greene King have said they want to provide the appropriate level of business support for each and every tenant. Targeted support to those who need it most.
Government announces plans to help large businesses
The Chancellor wants to ensure that "no viable business slips through the safety net of support" and has set out a loan guarantee scheme where Government will underwrite 80% of a loan. Businesses with turnover between £45m and £250m will be able to apply for loans of £25-50m.
And Finally...
Almost 50% of Wimpeys' 68-strong estate is now operating home delivery or takeaway services, and they continue to buck the trend with a new High Street opening and pushing ahead with refurbishment plans, reports Propel.