EconomyTrade Organisations

Rail strikes to cost hospitality £540m in lost sales

UKH has warned the strikes could ‘permanently derail hundreds of beleaguered hospitality businesses’ trying to recover from the effects of Covid

The three days of rail strikes set to take place this week will reportedly cost the hospitality sector £540m in lost sales across the week, according to UKHospitality (UKH).

This is based on a 20% drop in sales where a typical June week sees takings in the UK of £2.75bn.

UKHospitality Scotland said the planned industrial action on Tuesday (21), Thursday (23) and Saturday (25 June) “could permanently derail” hundreds of hospitality businesses trying to recover from the effects of Covid.

The industry body added that fragile consumer confidence will take a further hit, thousands of people able and willing to spend money in hospitality venues across the country will be prevented from doing so, and staff will struggle to get to work, losing wages as a result.

Leon Thompson, UKHospitality Scotland executive director, said: “For a devastated hospitality industry beginning its tentative post-pandemic recovery, these strikes couldn’t come at a worse time, and might deliver a fatal financial blow to those businesses already struggling to survive.

“After a ruinous couple of years, we should all now be pulling in the same direction to get the UK economy back on track. Urgent and productive talks are needed if we’re to avoid widespread and costly disruption next week.”

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