Pubs and restaurants across the UK have predicted a 40% dip in takings across the Christmas period under the new measures.
As the government has told people to work from home, 25% of Christmas parties in London were cancelled whilst general takings were down 40%.
“The damage has been done. We immediately saw cancellations. Anybody who was at all nervous, or any company that was planning a do was likely to cancel,” said Phil Urban, the chief executive of Mitchells & Butlers.
“We saw the impact on Friday and Saturday but we’ll really start to see the damage this week, particularly in city centres where historically we’d have lots of corporate events. That’s gone now and there’s nothing anyone can do to put it back.”
Hospitality shares were down on Monday as investors reacted to the new guidance.
The head of UK Hospitality, Kate Nicholls, commented: “The government’s official advice since the arrival of Omicron and the introduction of plan B has been very clear: go ahead with Christmas and new year parties as long as you are not showing any symptoms of Covid.”
“Hospitality operators have invested heavily to ensure the safety of staff and customers, focusing on better ventilation, hygiene and sanitation … As a result, pubs, bars, restaurants, hotels and nightclubs are safer places in which to socialise with family and friends than at home this Christmas.”