Prime Minister Boris Johnson’s advice for the public to avoid visiting restaurants, pubs and theatres is predicted to take a 45% bite from like-for-like sales at The Restaurant Group, which runs chains including The Filling Station, Frankie & Benny’s and Wagamama.
Meanwhile, both major chains and independent restaurant operators are switching their focus to takeaway food in a desperate attempt to stay in business.
The Restaurant Group, which has 54 outlets in Scotland, thinks the 45% hit during the opening half of the year could slow to a 5% decline during the second half, leading to a 25% fall overall. The group is planning for its restaurants to be shut for ten weeks and added that each additional month of closure would cost it around £15 million.
Like-for-like sales during the first eight weeks of its financial year had risen by 4.5% before the effect of the covid-19 outbreak struck. In the past two weeks, like-for-like sales have plummeted by 12.5%.
The effect has been even greater at its concessions arm, which runs restaurants and bars in airports and train stations, with like-for-like sales dropping by 21.7% during the past fortnight as travel bans kicked-in. In Scotland, the firm’s concessions consist of: Bocco, Costa Coffee, The Distilling House, Joe’s Coffee House and The Granite City in Aberdeen; BarBurrito, Brewdog, Flutes & Tails and Hudson St Grill in Edinburgh; and Beardmore, Caledonia and Tennent’s in Glasgow.
A raft of restaurants in Glasgow’s thriving food scene have announced they will close to customers during the outbreak. Eighty-Eight, Ka Pao, Ox & Finch, Pot Belly, Lagom and the Amber Regent are among the outlets that are shutting their doors. Many cafes have also closed their doors.
Other eateries have switched their focus to home delivery and takeaway, including Battlefield Rest, Mezcal, Partick Duck Club, Ramen Dayo and Tantrum Doughnuts. Chains such as Bread Meats Bread in Edinburgh and Glasgow, and the ubiquitous McDonald’s have also highlighted their takeaway services.
