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08
Jun

EXIT as a beacon of light at the end of the tunnel

Posted by: Nikki in: B2B

“Everyone from the event industry I spoke to is very excited about what is happening EXIT. I think it’s a little beacon of light  for the industry to focus on,” Maria May, CAA

The Third virtual session of international online conference “EXIT strategy”, discussed how the current pandemic situation has affected the live music industry and festivals, featured leading industry professionals including; Maria May, Global live music agent CAA, Christof Huber, YOUROPE, Cindy Castillo, Mad Cool Festival, Ruud Berends, ESNS and IFF Co-Founder and EXITs own Dušan Kovačević. Speakers gave insights into the situation in 3 different topics covering the current situation, the economic impact, and the future, and pointed out that newly published guidelines of WHO on mass gatherings, continuation of ETEP program, as well the loosening of restrictions in many countries in Europe, presenting big steps towards new horizons.

Video: https://www.youtube.com/watch?v=saXwVlcA9oU

“We are all really excited. Pretty much everybody I’ve spoken to in the industry is extremely excited that EXIT is going ahead. I think it’s a really good moment in this awful situation that we’ve all found ourselves in. I think it’s a little beacon of light for the industry to focus on a little bit against the backdrop of, we are still in very early stages with most markets around the world easing out of lockdown and working out what the future could be, what it looks like” – said Maria May. 

Secretary – General and board member of the European Festival Association Yourope, Christof Huber, said that the new recommendation of the World Health Organization which allows mass manifestations is a glimpse of hope.

“New reccomendations by WHO are like a glimmer of light that they see, that the live scene is important for our social feelings to get together, that it is important to have big gatherings” – explained Huber and stressed: „A good signs are ahead, we need to make sure that the audience trusts coming back and that the people can see that we can do the shows responsibly. “- explained Huber. What should never be forgotten, as Huber said, is the sustainability and value of live music.

Eurosonic Noorderslag is one of Europe´s, one of the most important showcase festivals that will definitely take place, in whatever format or form Governments and circumstances allow them to organize it.

“We’ll have artists do conference items but we’re not going to make up our minds on the final format or shape until somewhere in September. Obviously we are in a luxury position where we can see what the others are doing and how that goes, what works and what doesn’t work, and I think in this case it’s good to have a little bit more time, especially if you see how quickly things are changing at the moment.” – said head of Conference & ETEP @ ESNS / IFF Co-Founder, Ruud Berends. He revealed also that the European Talent Exchange Program, even in these difficult times, got the support to go ahead.

In previous months, the pandemic hit the event industry the hardest, bearing in mind that mass events were the first to be banned with a 100 percent drop in revenue.

The founder and CEO of EXIT festival Dušan Kovačević said that the invitation by the Prime Minister of Serbia to postpone the festival to august and not cancel it was unexpected news. Now the EXIT team has two months to prepare, and support and solidarity from the industry will be very important for the first events that are happening.

“I think that unity is probably the biggest theme that we will cherish from this situation. I was actually very positively surprised by how all of the industry came together. In Serbia, all of the festivals are set together for the first time and now creating an organization. This is the chance for the whole event industry to show to their Governments the real importance of the industry – economical, for the mental health, different social benefits, etc.” –  Kovačević concluded.

In discussing the  social importance of human contact, Cindy Castillo, underlined that the music industry must advocate that “new normality”, in which people can’t be able to touch each other, should not be an option because it’s in human nature to touch each other, have a need to hug get together, exchange feelings.

“We have been swallowing fear for three months. From TV, the internet, press. At the end of the day all of us, we work in music because we want to be different and it will be part of our life experience to actually go out there and normalize the situation. Not only because of our business but because music is about love, about getting together, about changing things. We need to make sure that all that fear has been for months disappears and they just start swallowing safety and understanding we can definitely be normal again, we will be normal again. I’m not going to live in a brutal reality „Black mirror” slash Matrix“ world.” – concluded Castillo.

One of the places in months to come, where the festival audience from all around the world will have the possibility to gather again will be the Petrovaradin Fortress from August 13 to 16., as all participants unanimously stated at the end of the panel – “See you at Exit!”

EXIT Festival is known for supporting social change since the Serbian revolution in 2000, is now presenting a series of panels under the name “EXIT Strategy”. The international online conference will gather regional or international panelists in the field of tourism, culture, events, media, and other spheres of public life.

To watch entire panel click here EXIT Strategy

Contact:
Nikki McNeill | Global Publicity
nikki@globalpubicity.co.uk

26
May

NTIA RAISES CONCERNS OVER THE IMPACT OF SOCIAL DISTANCING ON THE NIGHT-TIME ECONOMY AND EVENTS SECTOR

Posted by: Nikki in: B2B

The Announcement last week from the Government on Departmental Task Forces working with Industry to find solutions has been received well, but there is a big question on what the government’s expectations are in terms of public health measures, and much scepticism from the sector as to how this will be managed, both operationally and through the licensing regulators.

The sector has already experienced operators being asked to close takeaway services based on the Public Safety Licensing Objective, with reasons cited as encouraging people to not socially distance. But how far is the responsibility of the Operator going to stretch?

What if some of these businesses are unworkable under the expected conditions, There must be some consideration for Government financial support for businesses unable to comply, allowing them to survive until they are able to re-engage the market place?

Says NTIA CEO Michael Kill:
“Will the Government take a more pragmatic approach and allow businesses to generate their own guides to mitigate the risk presented to us, as is the case with current Health & Safety measures? Without clarity, no one can plan, prepare, understand the viability. Our Industry wants to open, we don’t want to open and put people at risk, and the last thing anyone wants is for us to re-engage the market for us to be closed ⅔ weeks later following another spike in transmission and deaths.” 

Across Europe many countries are considering reducing the 2m social distancing guide inline with the World Health Organisations 1m recommendation, which has been re-enforced by many academics across the country as ‘sensible’. The bigger question is how will this work in Pubs and Restaurants and are Nightclubs, Venues and Events able to even consider these measures given the very premise to their existence.

The Night-time economy and events sector is built on social engagement and while many operators have been working tirelessly to find a solution, many businesses across the sector feel this is not an option, and that with the reduction in business capacity, enforced spacing, queue management, staff and customer safety and PPE brings into question not only the viability, but whether this is something that can be managed in many spaces. Even before we account for the public perception of safety within our businesses.

When lockdown is lifted many businesses feel they will only return at 40-43% of capacity for the first three months, with 64% of businesses not being financially viable. With an estimated start up cost of over 31K for the initial period, and an estimated 55% of staff returning to their roles across the sector. 

The NTIA continues to raise concerns over the impact of Covid – 19 on the Night-time economy and events sector. This has been recognised by the Department of Culture, Media and Sports (DCMS) and the NTIA is now invited to join the Task Force working groups alongside other key organisations to draw on industry knowledge and experience to assess whether there are safe and workable solutions for the industry to return to business after the lockdown.

Katharine Khan, Village Underground &  EartH, London
“With 13 years experience running the 700 capacity Village Underground live music & club space in Shoreditch, London, we already know how many people we need to come through our doors to cover our costs.  Working on a regular basis at the much reduced capacities that would be required by social distancing will not enable us to cover our overheads, in fact it would run us into a financial hole pretty quickly.  We will need to find something else to do with the venue, either instead of running socially distanced events, or alongside them, otherwise we won’t exist by 2022. Our newer venue, EartH in Dalston is already covering the costs of a massive restoration project as well as overheads so the situation is similar if not more difficult.  Our best options at the moment seem to be to find something else to do with the spaces until we can reopen at ‘usual’ capacity, and to pursue live streaming.  If we are successful and can protect the businesses and the leases on the venues through temporary alternative uses we may be able to run some events under the new rules alongside but they would all be likely to lose money in themselves.” 

Dan Perrin Studio 338, London
“Nightclubs, festivals and music venues are taking on a huge financial burden in order to do our part in fighting COVID-19. This is our moral and civil duty. We have remained shut,  followed all guidelines and understand that we need to be patient and responsible at this critical time. It cannot, however, be fair, or right, to rush our industry into reopening with restrictions and conditions which will inevitably lead to financial ruin for the vast majority. 

Many of our overheads are fixed and cannot be scaled to make lower capacities viable. Not only that but the entire experience of going to enjoy music in a social, worry free environment, will be severely compromised and could cause permanent and terminal damage to live music in the U.K. – this is an issue which is unique to our industry……bringing people together is at the centre of what we do and have always done. 

It seems to me that we should be sensible with the reintroduction of events. Do not rush to reopen them, but repay our support by protecting us until it is safe to reopen in a way which will bring London’s music scene bursting back into life rather than seeing all of the heritage and culture we are so famous for become a victim of the virus. 

We do not expect to be making money right now, we are just about getting by and that is ok…..but to ask us to lose everything we have worked for seems grossly unfair. One thing is very clear: if clubs like Studio 338 are required to open at a vastly reduced capacity, with squares to separate dancers etc….that will mark the end of something very important to this city 

With the exception of outdoor events….let’s wait a little longer, support us just a little longer, let’s not lose the soul of London for the sake of a few months. Venues like ours are the colour in many people’s lives and our reopening will be the ultimate sign of the world becoming recognisable again. 

It’s important for everyone, venues and the public that it is done correctly with due consideration to what is possible, feasible and ensures people can actually enjoy themselves. That is the most important thing  after all.”

Mike Grieve – SubClub. Glasgow
“Fundamentally I don’t see how social distancing can work in a nightclub setting, regardless of the size of the space. The very essence of club culture is about sharing emotion and excitement as a crowd in close physical contact with each other. That’s not to mention the practical difficulties of managing bar service, toilets, security searches etc. or the fact that most clubs need 90% + capacity to break even financially. Until we can reopen to 100% capacity I think clubs like ours will remain closed.”

Contact:

Nikki McNeill | Global Publicity
Email: nikki@globalpublicity.co.uk 
Mobile: 07957 434517

13
May

NTIA SURVEY RESULTS REVEAL NIGHT TIME ECONOMY BUSINESS CONCERNS POST LOCKDOWN

Posted by: Nikki in: B2B , Events

START

Following a survey released to over 200 sample businesses nationally across the Night Time Economy & Events Sector the NTIA have some significant findings on the forecasted outcome following the release of lockdown.

  • Businesses believe they will only be operating at approx. 40-43 % of capacity once lockdown has been lifted.
  • 63.8% of businesses feel they will not be financially viable at 40-43% of business capacity under proposed government measures within the first three months, and will need sector specific support.
  • £31,131.00 would be the average cost to restart their businesses following lockdown.
  • Businesses have predicted that only 55% of the current hospitality workforce will return to work.
  • 93.8% of business owners are concerned that social distancing measures will make their business unviable.
  • 70.8% feel the battle with public perception and the current narrative will have a lasting effect on their businesses.

Without an understanding of the measures the government will place on NTE Businesses and Events in terms of Social Distancing/PPE, the level of financial support and the timeline with which these measures and provision will be put in place has left the industry in an untenable position, effectively mothballing many businesses across the country. 

Survey respondents believed that following the NTE & Events sectors release from lockdown, 63.8% of businesses feel they will not be financially viable at over the first three months of re-engagement and will only be operating at approx. 40-43 % of capacity.

When asked about the cost of re-engaging the market place following lockdown, the average cost was over £31,131.00 just to restart their businesses within the first three months. With nightclubs and suppliers costing over £50K to restart activity.

Over 70% of the workforce has been furloughed and there is a clear understanding across the sector that only 44.9% of the sector staff will not return to their roles. According to the survey only 55% of the workforce will return, in particular, we have had feedback from the Private Security Sector which believe that over 60% of the Workforce will not return to their NTE roles due to uncertainty within the sector. This will leave a huge hole in licensed security resource, with many concerned that skilled workers will have been lost amidst the lockdown, due to personal financial pressure and security. subsequently leaving the NTE & Events sector exposed.

93.8% of business owners and operators are concerned that the social distancing will significantly reduce business capacity, where it will become financially unviable. Many realise that the social engagement business model and the spaces with which they operate will not work with proposed restrictions by the Government. 

70.8% feel the battle with public perception and the current narrative that has been bestowed on the Night Time Economy & Events sector will have a lasting effect, until it is reversed by senior figures in Government. Guidance on PPE, Risk Assessments and Staff training and communication present very relevant financial commitment, but without clarity on sector specific measures and financial support, many businesses will be left in limbo.

Given that the Government has released a very ambiguous strategy for a potential release of business lockdown for the sector of 4th July, the Industry are asking for a minimum of 3 weeks (22.9 Days) notice to be able to prepare for restarting the sector, including the re-engagement of suppliers and staff resource.

The NTIA represents the enormous success story that is the UK’s fifth biggest industry, which accounts for at least 8% of the UK’s employment and revenues of 66 Billion per annum (that’s 6% of the UK total). Members include; Independent bars, nightclubs, restaurant owners, pubs, festival and live music event operators as well as music managers and other supporters of the benefits of the Night-Time Industry from the world of business, culture, media and politics.  This is an important sector to the economy that supports a huge amount of people and must be supported and protected.

Key Quotes from the Survey:

 “Social distancing is incompatible with businesses selling social interaction.  You do not go to a bar to get drunk.  You go to a bar to socially interact with people.  Asking hospitality businesses to practice social distancing is a bit like trying to sell someone a car they cannot drive.”

“From what I can tell there is currently no guidance on how we could feasibly operate social distancing in either restaurants (between staff and customers) or pubs and clubs (seems impossible). In addition, with the way alcohol affects the decision-making processes, is it feasible to expect customers to adhere to social distancing. How would we be expected to control social distancing in outdoor areas with naturally high footfall?”

“They need to realise we cannot open partially whilst still paying all our bills, i.e. electricity for 10 people the same as 100. Atmosphere in pubs will be damaged and will do more harm than good”

“Penalties for guests who behave in an unsafe manner, will businesses be penalised if guests do not cooperate with distancing measures, can we process multiple incidences of sick pay for staff if they must isolate? Can we refuse hours to staff who we believe are required to self-isolate or will they still be permitted furlough?”

NOTES TO EDITORS:

Analysis by Professor Fiona Measham & Maria Measham – Liverpool University

The survey was completed by 204 Members of the Night Time Industries Association including; Bars, Pubs, Restaurants, Hotels, Events & Festivals.

09
May

CATASTROPHIC IMPACT OF SOCIAL DISTANCING ON THE NIGHT-TIME ECONOMY AND EVENTS SECTOR

Posted by: Nikki in: B2B , Events

The Night Time Industries Association raises concerns over the impact of social distancing on the night time economy and events sector.

With the Government procrastinating over the future, the Night-time economy and events sector must act now and seek ways to adapt, diversify and remodel their businesses to survive during the lockdown. Ambiguous announcements on timelines and the consistent threats of social distancing remaining once lockdown has been lifted are placing pressure on many sectors.

The sector is built on social engagement and social distancing is an uncomfortable reality which will only lead to businesses becoming financially unviable in quick succession following the lift of government measures. The reduction in business capacity, enforced spacing, queue management, PPE, brings into question not only the viability, but whether this is something that can be managed in many spaces. Even before we account for the public perception of safety within our businesses.

 Says NTIA CEO Michael Kill:
“This goes beyond the current crisis; we must go further and use this experience to future proof businesses, bringing about a new normal, ensuring the economy is protected if this were to ever happen again. Lessons must be learned, and steps are taken to safeguard the future of the sector.”

Whilst the sector recognises the scale of the problems faced; it must be realised that some business models simply cannot adapt to some of the expected government measures. The balance between the required measures to safeguard public health against securing the protection of the economy is a hard line to draw.

Peter Marks –The Deltic Group, National Chain:
“Socialising in most town centre hospitality venues does not work with social distancing. It won’t work practically, or economically. Think standing areas, toilets, corridors, staff, and what would happen to the fire capacity?  It is the same for pubs, bars, clubs, live music venues as well as most restaurants. It is not for us to determine when we should return to normal albeit most of our customers and staff are in the low risk categories. But what we need to know is that we have a long-term support package that includes furlough payments and a rent deal mechanism for forgiveness, not just building up debt to become a zombie company later.  That way we can all be ready to give people the social life that is important to so many, whatever their preference for escapism, enjoyment and a night out.  Without hospitality, we merely live to work rather than work to live.”

Dan Deeks – Motion, Bristol:
“Social distancing has had a dramatic effect on our industry. Not only in the now as trading has stopped, but for the future.  Confidence in going out will be low and spending from our customers will also be impacted due to economic effects.  Coming back from this will be very hard, the challenge now is difficult but for example 3 months after opening will be even more so when bills need to be paid.”

Says Paul Daly – Roadtrip & The Workshop Zigfrid Ltd, London:
“We operate in a very over rented property in Shoreditch and this rent has evolved on the basis that loads of people come together, tightly together, and let off steam to amazing British & global music.  My venue does not have the room to have only 50% or 30% of the customers in and survive the huge costs involved in keeping the lights on. I’m vastly experienced at what I do and automatically know that if the government throws us under the bus and demands that we open in the middle of this pandemic we will not survive.”

Peter Hunter – Botanical Garden, Liverpool:
“There are changes and measures that will need to happen to industry to help it evolve in changing times.  There is an obvious need that these are mandated measures and balanced with support, as systems such as reduced capacity will across many industry venues render the business incapable of surviving the next few months. There needs to be consultation held with people inside the industry that have the day to day operational experience to figure out suitable best practices.”

Says Pete Jordan – Weird Science/MADE Festival, West Midlands:
“The concept of reducing venue capacities to follow social distancing guidelines is essential flawed. Beyond the economic aspects, the practicality of keeping audiences apart would be almost impossible to manage in an enclosed space. Leaving event organisers to try to navigate such and issue would neither be fair or financially realistic.”

The Night-time economy remains optimistic for the future, if we all get this right, and engage at the right levels to effect sector-specific recommendations, a comprehensive re-engagement strategy can be developed, supported by an extended financial support provision, through furlough, grants and loans.

A new landscape for the sector is anticipated and preparations for measures due to be imposed by the Government to safeguard Public Health are under way.

Furthermore, there will be considerations around the impact of resourcing, licensing and supplier management as well as understanding change in market conditions and customer needs on a business by business basis.

Contact:
Nikki McNeill | Global Publicity
nikki@globalpublicity.co.uk

22
Apr

‘REFLECTIONS ON THE CURRENT PERIOD & WHERE WE GO FROM HERE’

Posted by: Nikki in: B2B

These are incredible times. With such times, there are understandably many vital questions. As many in government, the media and commentators have put forward, rather than there being ‘the answer’ currently, there are lots of urgent and essential questions. 

That is why we thought it would be useful to bring together a number of people who are thinking deeply about the various issues currently and how they are impacting us generally and specifically. From scientists to sociologists, business owners to CEO’s, operators to lawyers and more.

We have noticed that a range of conspiratorial ideas are circulating too – while we very much believe it is essential to keep asking questions, be both critical and curious as well as open minded, we do not think it is at all helpful simply to copy and paste wildly inflammatory ideas and post with the only validation being they’re “not published by MSM”

We all face an incredibly difficult time. Certainly, for our industries, night time operators, owners, promoters, DJs, staff, technicians and freelancers of all kinds. We share this with many in tourism, retail, landlords and across society. Our view at The NTIA has always been that we are an essential part of society. Of our communities locally regionally and nationally. We are part of the heartbeat and body that makes the UK function – and shine. 

It is with that in mind and that orientation that we asked for a range of contributors. While we continue to lobby government and locally, engage with ideas and support the strategies while illuminating what we think to be the caveats, loopholes and, well, downright problems of some of the approaches, we want to keep reiterating how “We are all in this together” is not simply a catchy term. It’s the truth. 

We are determined to ensure that as many of us all come out of this together intact too. The losses are already immense across society. However, with a firm mind and strong heart and heads, we can ensure we get to voice our ongoing concerns, help with solutions and put forward our ideas for a sensible solution to an impossible situation. 

We shall continue with this alongside our other work. We are working immensely hard, as so many others are right now, to ensure what’s best for us all. We thank our contributors and send out our hopes for a speedy a resolution of this to everyone – and one that affords us ALL the best platform to move on from after. 

If one thing has become more glaringly obvious than ever before, where we used to have to explain in depth to politicians and officials and the public sometimes, how vitally important bars, clubs, events, festivals and our entire cultural ecosystem is – it is now abundantly obvious to everyone. We are all devastated that it should be thus. We want to make sure that as many of our cultural places and spaces are with us on the other side. Stay safe and curious. With love, The entire team at the NTIA”

Michael Kill CEO Night Time Industries Association

INDUSTRY INSIGHTS

Sacha Lord – Nightlife Advisor to Greater Manchester
Quite clearly, we are living in unprecedented times. However, from what I am seeing across Greater Manchester, some businesses are diversifying and adapting to the current climate.

It’s not a time for party politics and I do think some of what the Government has done e.g. Furlough, Rates, VAT has been great, but they have certainly not gone far enough, especially when it comes to the Self Employed.

The initial speech a few weeks ago, on the Monday, “advising” people not to go to bars, restaurants, clubs decimated our industry and I think this once again shows a lack of understanding of how important the night time economy is.

In Greater Manchester, we have launched UnitedWeStream.co.uk to entertain and raise funds for those within our sector, who need the most help at the moment. We have had 2 million views in the first week and raised into six figures worth of aid.

It also helped Greater Manchester Police re-enforce the Stay Home Campaign. Sadly, I do think all of us, not just those within the NTE, will be paying for this for the rest of our lives, whether that’s in taxes, VAT etc.

What has been completely obvious to me throughout this whole thing, is our industry stick together, we help each other out. I’m seeing restaurants making free meals for the NHS, hotels giving free rooms to the frontline services…there are too many to mention.

When to are allowed to see openings and I do think we aren’t too far off, it will be interesting to see how the government to it. My thoughts are a slow release working with smaller capacities and slowly building up to large scale events.

Dr Stuart Derbyshire – Associate Director of Psychology, National University of Singapore
The current outbreak of Covid-19 has brought much of our social and work lives to a sudden halt. The economic costs look likely to be eye watering: parts of the hospitality industry – hotels, restaurants, bars – will lose millions of jobs; some airlines are likely to entirely disappear; consumer spending, especially on discretionary goods, is likely to fall to levels not seen in decades. Those economic costs translate into human costs. We are social creatures, who depend on other people.

On our own, we are pretty miserable. There’s not much you can achieve alone. No matter how accomplished, talented, or industrious you might be, you couldn’t create the conditions of your life all by yourself. You likely couldn’t build the device your reading this from, or the printer you printed it from, or harvest the beans for the coffee your enjoying, farm and process the food you will eat later, provide your own medical care, or build your own shelter. And you certainly couldn’t have a conversation about how to do those things better.

Stopping all the activity that makes your life possible might be okay for a short while. It might even be nice. The pace will slow down, we can rest more, avoid conflicts. But the downside is huge. Stopping and isolating is inhuman. Think of all the first kisses that won’t happen, all the final farewells that will be missed, all the first, and last, trips that won’t be taken. Stopping and isolating is destructive. Think of the hospital services that will have to be cut, the research that won’t be done, the new breakthroughs in technology that won’t appear, the new cure that won’t be discovered. Stopping and isolating might be a near term solution to Covid-19 but stopping and isolating is a problem that festers with time. The quicker we move and get out, the better.

Josie Appleton – Director, Manifesto Club
“The lockdown has suspended all civil liberties and is having a devastating effect on social and economic life. It may be necessary for a period but should be relaxed as soon as possible so that people can resume their lives. Lost jobs, lost income and confinement also lead to mental health problems and even deaths, just as surely as can infectious disease. We should not allow the response to the virus to leave as heavy a toll as the virus itself. If these devastating lockdown measures continue for too long, there will be no money in the public coffers to deal with the sick from this or any other disease. Lockdown and confinement should not be pursued except with the greatest reluctance and as a temporary condition, not a permanent solution. Lockdown is antithetical to our society and economy, and to free life, and we need an exit strategy as soon as possible.”

Professor Simon Winlow – Professor of Criminology Northumbria University
‘I think that we can expect an immediate bounce back as soon as the lockdown is lifted. The principal attraction of the NTE for most consumers is the promise of social interaction. People missing seeing friends and family, and a night in the pub, or eating a restaurant-quality meal, will be top of many people’s list when we begin to emerge from the crisis.

That said, I am sure that many will continue to avoid those places that attract large crowds. It seems likely that the lockdown will be lifted long before the virus has been defeated. Responses will reflect perceived threat. Younger people are likely to be less concerned and so are likely to resume established consumer practices. Older patrons, or at least some older patrons, will continue to feel vulnerable and will approach leisure venues with a degree of caution. The more that venues can do to reassure prospective customers the better. An overt concern with cleanliness will help, but there are probably other things that can be done in this regard.

In terms of futureproofing, I think different sectors of the NTE will need to respond differently. Diversification can work in tandem with an awareness of brand and community. For example, much can be done virtually to ensure consumers – especially young consumers – remain attached to an NTE brand.  Some music venues are already doing this. Many are now to using programmes that enable large groups to get together online. Everything from DJ sets to wine tasting classes can work to keep brands active during future periods of lockdown. Many restaurant owners will, I imagine, be ready to move into home delivery if a future lockdown arrives. Good, clear websites and reliable delivery will help. I imagine some restaurant owners will already be looking into moving into home delivery – it represents an opportunity to expand business even during the normal day to day business cycle. It’s quite easy to set up a website and a delivery service, but doing it well, perhaps with a few attractive extras added on, will no doubt set some apart. Establishing a strong virtual presence now seems increasingly important. In the future this will have to be more than a facebook page and a twitter feed – although these fora will remain important (but will have to do more in terms of engaging potential consumers than simply list menus or upcoming events etc). Some aspects of the NTE will need to respond differently to others. Virtual tours, virtual pub quizzes, virtual concerts, etc – much will depend upon the willingness of owners to get involved in these activities in the hope of securing brand loyalty and future revenues. 

So, my conclusion is that the NTE is likely to remain one of the business sectors most effected by any future pandemics/lockdowns. The attractions of most aspects of the NTE are principally social – getting drunk, a good meal, etc are social activities. This won’t change. However, those involved in the NTE can take a few practical measures to ensure that the drop-in revenues in any future lockdown are less harmful and the bounce back is quicker. In any case, it makes sense for business owners to diversify income streams, put some effort into securing brand loyalty, and begin to explore what the virtual environment can do to make businesses viable in the long term.

Nick Morgan CEO – We are the Fair
Whilst the industry is on hold and many furloughed businesses shouldn’t be haemorrhaging money albeit it appears landlords are not engaging in any reduction discussions.  Deferment is all well and good, but I refuse to saddle my business with a mountain of debt and then work the next 12 months to pay it off!

I didn’t realise until yesterday that the bank’s modelling for the CILBS is based on accounting for 20% of payroll during and after furlough.  I have a fairly good relationship with our bank manager, and he is saying he can only account for 20% of payroll and 100% of other business fixed costs even when extending cash flow forecasts for 12 months to try and reach the maximum lending threshold.  

This represents the top up during furlough however post I was shocked to hear no underwriting for a larger percentage of payroll.

This either uncovers the intention for Government to continue the furlough scheme for up to 12 months, however I am unsure how they can possibly underwrite unless every lending market is reset.  Alternatively, it could be interpreted as a key indicator that they expect the economy and businesses to recover fairly quickly post furlough. 

Unlike many other effected industries, if the outdoor industry misses its season(May-Oct) many suppliers won’t be into their normalised billing cycles until January/ February and based on a reduced lending threshold because of this new discovery means many simply cannot survive as they cannot draw upon the suggested max which was 25% of turnover

Most other industries can expect quicker recoveries, even indoor events as they can trade year-round (if sanctions are lifted).  Even pubs and bars should in theory, upon reopening take reduced sales that same day.  We have a fairly robust balance sheet so are maybe more fortunate, but many are less fortunate, and this sent alarm bells ringing with our FD and myself yesterday. 

Paddy Whur CEO WoodsWhur
We have had a few weeks now to accept the “new normal” or at least what has to be normal for the immediate future.

Our general work has gone very quiet with current cases being adjourned and new applications being put on hold. I am pretty sure that whilst Local Authorities are being urged to start holding virtual hearings that most will be hoping to adjourn matters until face to face hearings can be heard. I undertake a large number of multi-party cases and do feel that these would be difficult to run properly. I certainly wouldn’t be looking forward to managing them. I had a video conference with four parties dialling in yesterday and unless all are very disciplined it becomes very clumsy.

Part of my specialism is festival and large event space licensing as I look after Printworks, Drumsheds, Field Day, Digbeth Arena, The Mill amongst others. The issues here are the time it takes to programme events and to go through detailed Safety Advisory Group meetings to ensure that events can run safely. I know that my clients will be champing at the bit to put on safe events as soon as the lock down is over. One thing is for sure, there will be no shortage of people looking for a good party.

Peter Marks CEO Deltic Group
The government have been working without experience and learning as they go to try and support businesses and support the health of the public at large. This is a terribly difficult task trying to balance the economy with the health of the nation particularly the vulnerable and of course public perception and politics in the mix. Overall, I think they have done a good job so far in trying circumstances.   Furloughing, delaying VAT and no rates has saved us for now.  I would have liked to have seen more for the self-employed too, but until there is help from the government and banks for landlords, to be able to pass that help on to us, then there is still a hole in the bucket. The answer is not to take a whole load of debt to pay the landlords to then kick the can down the road and run a zombie company for the next three years.  I also think we are getting bogged down in the detail rather than seeing the big picture.  We are spending too much time working out furlough questions Who is out? What happens with tronc? It is like rearranging the deckchairs on the titanic!

The next issue for the government though is that we need to get the return to social mixing right.  Sure, it needs to be cautious, but we need it to be as fast as possible without pressurising the NHS, as the longer this goes on the more damage to the economy.  And in case people forget, that pays for the NHS!  And it won’t be the lack of government help that will put many businesses under, it will be the change in consumer behaviour.  Whilst the night-time economy will, I believe, stand up quite well albeit I anticipate a cautious return of our customers, for the wider economy and climbing out of the recession/depression, just think how long it is going to take travel, tourism (particularly international) and airlines to return to anything like normal.  They probably won’t ever.  There is a new norm!  Which means that we need to get the economy moving again as soon as possible.

Contact:
Michael Kill CEO NTIA
Email: Michael@ntia.co.uk
Mobile: 07951590953

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