UK Edition
London needs Eat Out to Help Out extension, says Greene King boss
Capital cities are recovering more slowly as workers stay at home
The government needs to extend its Eat Out to Help Out scheme to help London and other struggling cities recover from the pandemic, according to the boss of pub chain Greene King.
Chief executive Nick Mackenzie told the Evening Standard that its trade in the capital had been “significantly worse” than expected since lock-down restrictions eased, with weekly sales about 60pc lower than one year ago.
His comments will fuel concerns about the damage being done to London’s once-thriving bars and restaurants as workers continue to stay away from offices.
Greene King, which was sold last year to Hong Kong investor Li Ka-shing for £2.7bn, has more than 2,700 pubs, restaurants and hotels in the UK, including in the City and the West End.
Profits for the year to April 26, about one month after lockdown was enacted, fell 15pc to £412m.
Eat Out to Help Out gives diners 50pc off bills up to £10 to try to encourage them back into restaurants and boost the hospitality industry which was forced to shut other than for takeaway during lock-down.
Around 80pc of hospitality firms halted trading, with 1.4 million workers furloughed, the highest of any sector.
Launched at the start of August, Eat Out to Help Out has subsidised more than 35m restaurant meals during its first two weeks.
Mr Mackenzie said the scheme had been "fantastic" but needed to be extended and other support for the sector was also needed.
City centres are still suffering as people continue to work from home and avoid public transport. Pret a Manger, the sandwich chain, is cutting staff working hours and closing stores.
Kate Nicholls, chief executive of the trade association UK Hospitality, told the Evening Standard: “It is increasingly clear that the crisis is far from over for London’s hospitality businesses and that the city will be affected more deeply and for longer than other parts of the country.”