Sales plummet by 48% in the third quarter
CGA reveals it equates to a shortfall of £17bn despite the boost from EOTHO in August. Phil Tate, of CGA, said: "The Tracker makes plain the seismic impact of covid-19 and restrictions on hospitality. After sales were all but wiped out in the second quarter, a 48% fall in the third is not the recovery the sector was hoping for.
Grosvenor Estates innovate with Tenant support
The property company has set up a fund to take stakes in retailers and restaurant operators to help them to grow after the pandemic subsides. James Raynor (CEO) said "By innovating to invest in tenants, we're rewriting what it means to be a landlord - seeking to create partnerships where each is genuinely invested in the others' success. Through long-term investments, we can help these businesses adapt their strategy and grow."
Hotel opening planning for 20% occupancy
The £40m Middle Eight Hotel in Covent Garden is hoping for 20% occupancy. The GM said tourism is down more than 90% in London and few signs of it picking up but the hotel is ready and we want to open it. We do believe that this situation will not go on forever and you do have to start establishing yourself in the market." The hotel will have 168 rooms and 12 suites.
Hospitality is not the cause of Covid cases
UKH, BBPA & BII research from 22,500 outlets shows only 1% (275) of hospitality venues have been linked to NHS Test and Trace incidences. Public Health England data shows hospitality was linked to just 2.7% of cases. A spokesman said: "The evidence is clear that pubs, restaurants and hospitality venues are Covid-secure. Singling them out is simply illogical, counterproductive and grossly unfair."
Revolution Bars Ltd launch CVA
Revolution Bar Limited (RBL) with 50 units (The subsidiary of Revolution Bars Group with 73 units), has launched a CVA today and it proposes to use the CVA to exit six bars and reduce its rental cost base.
Rent takes toll on Iberica Restaurant Group
The Spanish restaurant operator has undergone a CVA with rent levels a major factor. As part of the restructure, Iberica has closed its sites in Glasgow and Manchester leaving it with 4 sites in London and one in Leeds. The CVA brought rental concessions up until the end of July 2021.
Caffe Nero is considering CVA
The coffee chain is to launch talks with landlords as it aims to reduce its rent bill. The company is working with KPMG in regards to its circa 660-strong UK estate.
CVA approved for Wahaca. The Mexican restaurant company has had its company voluntary arrangement (CVA) approved, which will see the company close 11 of its circa 25 sites. The CVA will lead to lenders and shareholders writing off £25m of debt and injecting £5m of new money into the business to put it on a more sustainable footing.