Coronavirus: Restaurants call for more help as jobs 'at risk'

Closed pubImage source, Getty Images
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Up to 40% of pubs surveyed in April said they would not survive until September under lockdown

"Thousands of jobs" in the hospitality industry are at risk and the Welsh Government needs to do more to save them, a restaurant owners' group says.

Unlike the rest of the UK, restaurants in Wales do not have a reopening date.

The Wales Independent Restaurant Collective (WIRC) said redundancy notices were being issued across the sector this week.

The Welsh Government said it would announce its plans when "further headroom for change allows".

The WIRC said it has nearly 300 members, employing an estimated 4,000 staff.

The group wrote to First Minister Mark Drakeford on 11 June calling for clarity on a "timeline for reopening" and a review of financial support for restaurants.

A government official emailed the group on Tuesday saying a "rapid review" was being undertaken to consider cafes, bars and restaurants opening on an "outdoor basis".

"Whilst we have signalled the possibility of some aspects of tourism reopening if the evidence continues to support this, it is not currently the right time for bars and restaurants to open," the email said.

In the rest of the UK, pubs and restaurants will soon be able to open indoors, with safety measures in place.

In Northern Ireland the date is 3 July, in England it is 4 July, and 15 July in Scotland.

Tom Furlong, from the WIRC ,said not having a restart date puts "thousands of jobs at risk".

"Welsh Government, despite announcing a rapid review, have not done enough to save these jobs, with contract changes and redundancy notices being issued this week before 1 July," he said.

"We now urgently need a commitment to work with us towards a sharing of responsibility between government, businesses and the public for a safe and sensible re-opening."

Unlike self-contained holiday accommodation, external, pubs, bars and restaurants have not yet been given a date to prepare for reopening.

From the front line

Image source, Natalie Isaac
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Natalie Isaac from Bar 44 says the future looks bleak for the company's Welsh venues

Natalie Isaac, from Bar 44 in Penarth and Asador 44 in Cardiff, said: "Whilst we understand the public health crisis, we are devastated that we still have no time-scale for the re-opening of the Welsh hospitality sector.

"When the furlough scheme changes on 1 August, we quite simply cannot take loans out to pay staff not to work - this would not be a sound business decision. Businesses are on the line - many may not re-open.

"Our lockdown losses have been significant and, with no end in sight and zero revenue, the future looks bleak. We need urgent financial assistance to bridge the funding gap."

Meanwhile Simon Wright, from Wright's Emporium in Llanarthne, Carmarthenshire, said jobs and businesses were already starting to "crumble away".

"At every step we have tried to emphasise to Welsh Government the urgency of the situation and the implications of what is now becoming inevitable - not just the loss of jobs and businesses but the loss of market to the hundreds of small producers that we work with on a daily basis," he said.

"Whilst the Labour Party at UK level is calling for specific help for those businesses that may be unable to trade without restriction for months to come (with specific reference to hospitality), the silence from the first minister has been deafening."

He added: "We don't expect Welsh Government to have all the answers, this crisis is asking questions that have never been asked before, but I had hoped we might be seen as part of the solution."

A Welsh Government spokeswoman said: "The hospitality sector is a vital part of the Welsh economy.

"The first minister has asked for a rapid review of the hospitality sector to consider a potential phased re-opening of pubs, cafes and restaurants. We will announce our intentions when further headroom for change allows."

The view from Aberystwyth

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The Conrah gets 60% of its income from weddings usually

Meanwhile, some businesses in the Aberystwyth area have decided to remain closed even when they do get a date for reopening.

Geraint Hughes, of the Conrah, in Ffosrhydgaled is remaining closed until spring 2021.

He has had to let his 26 members of staff go, and says the risk of reopening is not worth it, with 60% of his annual income coming from weddings which has "all disappeared this year".

"It would cost me more to re-open than stay closed. Our insurance is not prepared to pay out for coronavirus either, so the business could be in a worse state should we reopen and have cases here," he said.

Two pubs have closed permanently. The Fountain Inn at Trefechan shut in April and the New Cross Inn near Aberystwyth made the decision to follow suit, less than two years after it started trading.

Three other pubs in the area have told BBC Wales they are uncertain about reopening, even after restrictions are lifted.