Recent widespread violent disorder and the threat of further rioting dealt a severe blow to the hospitality industry, according to new data from CGA by NIQ. Sales plummeted by a substantial 10% nationally, as businesses were forced to close and customers stayed indoors.
The impact was even more dramatic in areas targeted by rumoured protests, with sales falling by as much as 40%. Foot traffic in these locations dropped by a staggering 75%. The crisis led to widespread cancellations of events, particularly in coastal resorts and city centres.
In response to the crisis, Business Secretary Jonathan Reynolds has backed calls for swift insurance payouts to help affected businesses recover.
Kate Nicholls, Chief Executive of UKHospitality, said: “These figures are startling and shows the enormous impact the riots, and threat of further disorder, have had on our high streets and communities.
“Bustling, vibrant city centres were turned into ghost towns as the public stayed at home and businesses shut.
“Thankfully, protests and riots didn’t materialise as feared this weekend and we can now turn to how we support our high streets to recover, at a time when many were already struggling with the affordability of running a hospitality business during challenging economic times.
“Hospitality is the glue that knits our communities together and our sector stands ready to work with the government to play a central role in the renewal of our high streets after the challenges of the last 10 days.
“For those businesses sadly affected, that work has already begun and I’m grateful that the Secretary of State has backed our call for swift action from insurance companies dealing with claims. Quick action on practical measures like insurance claims will be crucial for businesses to get back on their feet.”
