Events

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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.

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