Less than a quarter of pubs will be able to sell booze to Scots outdoors when hospitality starts to reopen from next month.
Research carried out by CGA and Alix Partners found that just 22.9% of hospitality premises in Scotland have a garden, terrace or other outdoor area they can trade from.
The report shows that there are 41,000 sites across the UK that can serve alcoholic drinks outdoors, which is 38.2% of all hospitality across the country.
Scotland has the lowest percentage of outdoor areas than anywhere else in the UK according to the data.
The impact that the coronavirus pandemic has had on the UK’s hospitality sector was also laid bare on the report.
It is believed that the number of licensed premises has declined by 7,592 from March 2020 to February 2021.
Aberdeen was one of the worst hit areas in the UK, with licensed premises declining by a huge 10.4% in the last year.
Edinburgh was one of only five major cities that lost less than 3% of its bars and licensed restaurants since March 2020.
AlixPartners’ managing director, Graeme Smith, said: “We’ve seen a spate of operators announce plans to reopen for outdoor service on April 12, and while it’s unlikely to be profitable for the majority to do so, businesses will do all they can to maximise their usable space.
“For those that do reopen, managing cashflow will now be of critical importance as work with supply chains begins again, and relationships with suppliers, landlords and other stakeholders will be tested.
"There is potential to drive stronger and more efficient operations on the other side of the pandemic, but the many in the sector will be weighed down by debt for some time to come and will spend the next year and beyond rebuilding their balance sheets and clearing their arrears.
“The overhang of rent liabilities also remains largely unresolved which means that, in spite of the clear pent-up consumer demand that exists, the hospitality sector is far from out of the woods.”
The hospitality sector is scheduled to finally reopen across Scotland from April 26 - which will mark four months since lockdown restrictions were imposed by the Scottish Government.
Punters will be able to enjoy a drink outside until 10pm, while restaurants and pubs can serve food and non-alcoholic drinks indoors until 8pm.
A wider reopening of the hospitality sector is expected to take place from May 17.
Karl Chessell of CGA is urging local authorities to consider opening street spaces for businesses to serve from when beer gardens are allowed to reopen.
He said: “With huge pent-up demand for hospitality and consumers’ confidence rising, outside trading could give sales a useful kickstart—but there are a lot of variables at play.
“Pubs with beer gardens will be popular if the sun shines, but some restaurants may find it harder to recoup the costs of reopening, especially if the April weather isn’t favourable.
“Well over half of licensed premises have no space at all in which to trade, though they could yet reopen in April if local authorities take a proactive approach and open up street space to serve on.”
