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News & Blog

Calling all in the Hospitality Trade

Posted: 20th October 2020

As at today, Tuesday the Nineteenth of October, the business climate for pubs, restaurants, and hotels is extremely tough.

Right now, lobbying the government to demonstrate the facts and the science behind their decisions, is high on the agenda.

On the BBC Scotland John Beattie Drivetime show last Thursday, Michael Bergson from Buck’s Bar – “Austria (the country that eats out the most) has a death rate 15% that of the UK and their bars and restaurants are open

James Withers from Scotland Food & Drink “There is anger, as the hospitality trade is going through a lot of pain and cost for nothing”

He also cited Nicola Sturgeon’s comment “We have to learn to live with this virus and we have to take a strategic approach”

A vaccine is the answer to this stop start life for the hospitality trade. Scientists say a vaccine normally takes ten years to be developed and checked successfully enough for distribution.

As there are many worldwide teams working flat out, they are reckoning this can be down to 10 months. The forecast therefore is now around summer 2021 from some corners, but Prof Jeremy Farrar of the Wellcome Trust said there is “light at the end of the tunnel” as he reckons a vaccine will be ready in the first quarter of 2021. Either way, Christmas is not going to be great and so taking a strategic approach until next year is paramount if we are going to come out of this with the industry not completely obliterated.

Is it not social gathering (I think we used to call these parties) in flats and houses more of the problem? After all, pubs and restaurants can be regulated, and have already put in structural changes and policies to implement safe drinking and eating. This would be radical but could off sales be temporarily banned from supermarkets and off licences whilst pubs and restaurants remain open. It would mean more people would be encouraged to go out.

This may not be an acceptable answer, but I am simply trying to illustrate there may be other solutions to this current set up. We can’t possibly keep going with a stop start approach.

Going back to longer term strategy thinking (this being survival until next year and beyond)– Mycos helps business customers with their electric and gas contracts. This is always a big cost, along with rent and staff wages. Currently we are seeing some suppliers refuse the hospitality trade new contracts. You in turn are then forced to higher out of contract rates at a time you can least afford.

Talk to us, we have relationships with many suppliers, and will look for possible alternatives for you. Not all suppliers are refusing the hospitality trade.

And don’t be put off going into a contract during this turbulent time – it is the cheapest method for getting best price. If, at a later date, you must cease trading (heaven forbid) your energy contract will only be valid up to the date you are no longer in business. So, you are not liable beyond. Therefore, you can be safe in the knowledge of best price now and a safety net for later if everything goes Pete Tong.

Give us a call for any help or advice, we are here to help the best that we can,  on 0131 344 025 or email on mycos@mycos.co.uk

Mycos, serving the business community for over ten years, www.mycos.co.uk

Business Comment

Business Comment is the Edinburgh Chamber of Commerce’s bi-monthly magazine. It provides insight on Edinburgh’s vibrant business community, with features on the city’s key sectors, interviews with leading figures and news on new business developments in the capital.
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