With the Government’s announcement earlier today that social distancing through pubs, cafés, bars, hotels and restaurants has been reduced to 1 metre from 4th July, out of home food and drink consultancy CGA has calculated that this means 145 million additional pints of beer will be sold through the sector, compared with what would have been sold with 2 metre social distancing.
The new rule comes as a welcome relief to the out of home food and drink sector. CGA’s original forecast was based on 2 metre social distancing remaining in place until the end of August, meaning outlets could only trade at around 30% capacity, whereas at 1 metre they can trade at 70%, equating to a significant difference in sales as a result of increased capacity alone.
“As well as the difference in sales, more outlets are likely to open in July, as their businesses become viable at 70% capacity. The combination of more outlets opening and a significantly higher capacity across all who do, equates to an additional 145 million pints of beer sold over the remainder of 2020, although this does depend on consumer confidence and how people feel about going out again,” commented Jonny Jones, CGA’s director of client services.
“Our data suggests there is enough pent-up demand to max out sales at this level of supply, but many consumers are still cautious about returning to the trade and want to see precautions put in place to ensure their safety. It’s now down to operators to market their credentials as Covid-19 safe, and ensure that customers feel comfortable to visit their outlets.”
These figures are based on CGA’s longstanding On-premise measurement service, which measures all drinks sold in licensed venues, along with our consumer research via BrandTrack (April results) and our latest Business Leaders Confidence Survey.