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1 in 3 hospitality businesses report ‘better than expected’ revenue in the wake of reopening

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Almost a third of hospitality businesses that reopened on 4th July have reported ‘better than expected’ revenue according to a survey of the Hospitality Professionals Association’s (HOSPA) membership.
Further to this, 97% felt that their safety procedures were working, while 94% felt that, generally speaking, guests abided by the new rules.

However, despite revenues being better than expected, most operators (67%) reported that revenue was down by more than 50% on the previous year.  

The findings came from HOSPA, which, in the wake of the reopening weekend, questioned its membership, which is made up of more than 1,000 hospitality operators, to determine how they’d fared.  

Respondents were asked to compare their revenue from the same period last year. An overwhelming majority (67%) indicated that revenue was down by more than 50%, with a further 25% reporting revenues being down, but by less than 50%, while 5% felt revenue remained the same – with just 3% reporting an improvement.  

However, despite revenues being down on last year, almost a third (32%) felt that their opening weekend revenue was better than expected, with a further 46% saying it was ‘as expected’, with the remaining 22% finding revenues were worse than anticipated.  

Asked about capacity given social distancing requirements, 49% of respondents said they were operating at between 50% and 75% of their normal capacity, with 34% operating between 25% and 50%, while just 14% were operating between 75% and 100% of their usual capacity.  

Jane Pendlebury, CEO of HOSPA, said: “We were really keen to find out how hospitality businesses had fared during the reopening phase. Looking at the results of our survey, whilst revenues are down considerably, a big plus is that such a large proportion seemed to fare better than initially expected.”  

She continued: “We really can’t understate the impact of the pandemic on the hospitality industry. Revenues have been decimated in the past few months, but we’re keen to look for any positives. And whilst we’re set for ongoing difficulties for some time to come, the fact that some have seen better than anticipated trade is certainly good to hear. With safety measures (so far) seeming to work, and guests (so far) seeming to abide by them, we’re hoping that, as an industry, we can build on this initial positivity to try and bounce back – with recent government initiatives also helping us in this.”  

The survey was conducted by Critiquie between the 7th and the 9th July 2020, and questioned HOSPA members.

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