As you know, the pandemic sent the hospitality sector into hibernation.
Economically, few sectors suffered more; retailers took their business online, financial services saw insurance claims drop significantly, but companies belonging to the world of hospitality faced a long period of anxiety-inducing inactivity.
Short-stay accommodation bookings dropped by 46% between 2019 and 2020, EU tourism dropped by 61% in the same period, and restaurant bookings dropped by an average of 98%.
While many restaurants, hotels and leisure facilities used the downtime to renovate premises, improve processes and streamline back-office operations, some didn’t have the luxury of spare capital to undertake these projects.
Instead, an above-average number went into administration.
Illustrating the struggle of many hospitality businesses, the Financial Times reported that London has lost approximately 14% of its restaurants since 2020, and the Italian accommodation and restaurant industry lost approximately €15.6 billion as a direct consequence of the pandemic.
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"In July, the accountancy firm UHY Hacker Young reported restaurant insolvencies had risen 64% year on year. Britain's licensed hospitality sector (pubs, bars, restaurants) lost 2,200 sites in the third quarter of 2022 alone, a closure every hour."