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Marston’s has warned that 2,150 jobs will be affected after the government tightened restrictions on the coronavirus.
Curfews and new rules on masks and table service, added to three levels guide to operate in England, as well as harsh constraints in parts of Scotland, had affected consumer confidence, the pub group said.
Marston’s said the introduction of the new restrictions was “hugely disappointing” and that there was a lack of evidence linking pubs to the recent surge in coronavirus infections.
“Inevitably, and sadly, the recent restrictions will affect jobs,” the company said.
He said that after the government’s “vital” support to his workforce over the summer, 10,000 employees had since returned to work.
“However, due to the recent additional restrictions, we have reluctantly concluded that about 2,150 pub stalls that are currently licensed will be affected,” added Marston’s.
“In addition, we have started a full review of overhead costs that will conclude at the end of December.
“These decisions are difficult but necessary due to the constraints placed on our business at this time.”
The employment warning is the latest sign of the strain facing Britain’s hotel sector as a result of the coronavirus employment crisis, after its rival Greene King said planned to cut 800 jobs and a day after a bailout deal for Gourmet burger kitchen which will see the closure of 26 restaurants and the elimination of 362 roles.
The pub and brewery company employs 14,000 people
Sky’s tracker of publicly announced job cuts during the crisis suggests the sector is rapidly catching up with aviation and retail as the worst hit, with more than 30,000 hit.
Marston’s, which owns 1,400 pubs across the UK, including the Pitcher & Piano brand of bar, employs around 14,000 people.
In a business update, it revealed the impact of the blackouts seen by all sites closed from March to early July and still well below last year’s levels for a few weeks after that.
Of August Eat out to help The meal discount scheme saw it recover, with sales 6% ahead of the same period in 2019, but in September they fell again and were 12% lower.
Additional restrictions introduced this fall have taken their toll, with eight pubs closed in Scotland, although out of 18 in the “higher risk” Liverpool region, most serve food and under existing guidelines “are able to stay open,” said the company.
“The initial effect of these new rules has been to undermine consumer confidence and create uncertainty,” Marston’s said.
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“The restoration of trust will only happen when the UK government and decentralized administrations are able to remove these restrictive measures, which they claim are intended to be short-term in nature.
“The introduction of these additional restrictions and guidance affecting pubs is hugely disappointing in light of the lack of clear evidence linking pubs to the recent increase in infection levels, and our own data suggest that pubs are effective to minimize risks. “
Marston CEO Ralph Findlay said: “The additional restrictions that have been implemented in the UK more recently present us with significant challenges and will make business more difficult over a period of time.
“I am very sorry that the consequence of this is that the jobs of around 2,150 of our colleagues will be affected, but it is an inevitable consequence of the constraints placed on our business.”
The shares fell 4% in early trading.
