Eat Out to Help Out: What happens when the restaurant discount scheme ends?
Queues formed outside restaurants and reservations were booked up weeks in advance as Brits ventured out of lockdown to make the most of discounted meals this month.
More than 64m meals have been claimed using the government’s offer to cover half the bill during August, with restaurants toasting a much needed pick-up in sales after months of enforced closure.
The Eat Out to Help Out scheme gives customers 50 per cent off up to £10 a head on meals bought at participating outlets on every Monday, Tuesday and Wednesday throughout August.
Pub and restaurant bosses have hailed the scheme as a success, saying it has boosted sales during the usually quiet early week period and encouraged nervous customers to dine out after months of restrictions.
City Pub Group said sales were up 50 per cent. Executive chairman Clive Watson said the scheme had been a “real boost” for the sector, with some punters visiting pubs twice a day.
Fulham Shore, which owns the Franco Manca and The Real Greek chains, said customer numbers soared 50 per cent due to the offer, while food wholesaler Brakes reported a 150 per cent jump in Sunday for Monday orders compared to the end of lockdown.
Restaurants fear drop in sales
However the industry is fearful that the surge will dwindle after the discount scheme ends on 31 August.
Experts have warned that the drop off in trade, which would come as the government winds down its furlough scheme, could have a negative impact on the industry as it attempts to restart, with further job losses expected.
Today, Mexican chain Wahaca confirmed that it would shut 10 restaurants, including three in the capital, due to the pandemic.
In an email to staff, founders Mark Selby and Thomasina Miers said the company would try and save jobs “wherever we can”.
Burger King, The Restaurant Group and Pizza Express are among the casual dining chains to have already announced cuts to their workforce due to the impact of coronavirus.
A spokesperson for Wagamama owner The Restaurant Group said there had been a “very strong” customer response to the scheme. However it added “the real proof of the pudding will be when the scheme finishes at the end of August”.
Earlier this week JD Wetherspoon said it “expects a period of more subdued sales once the scheme for subsidised early-week meals and drinks ends”.
Calls to extend Eat Out to Help Out
Influential industry groups including UK Hospitality, the British Beer and Pub Association (BBPA), the Federation of Small Businesses and British Bids have called for the scheme to be extended into September.
“An extension of this scheme could provide a lifeline to businesses that need to survive throughout the winter months,” British Bids chief executive Chris Turner said in a letter to the chancellor.
FSB national chair Mike Cherry said the discount should continue to provide “critical support” as the UK enters “a period of economic make or break”.
Beyond September the scheme could be reactivated in areas that have faced new local restrictions or lockdowns, he said.
“As we head into the winter and New Year, the Government should be conscious of the fact that this scheme is one that genuinely works in helping to get people out into small businesses,” Cherry added.
“The option of reintroducing it should the economy begin to stall should be front of mind.”
UK Hospitality chief executive Kate Nicholls said the scheme has boosted businesses commercially and improved customer confidence.
“It would keep customers excited about going out and give businesses the support they still need,” she said.
“The hospitality sector is still fragile and faces other challenges, but prolonging the Eat Out scheme could help businesses back to stability and enable them to safeguard jobs and livelihoods.”
However a spokesperson for the Treasury said: “Part of this popularity is precisely because it is a time-limited scheme – this reminds and encourages people to safely return to going out.”
Meanwhile some firms, such as City Pub Group, Bill’s and Boxpark, have taken matters into their own hands by continuing to offer discounts throughout September, without the government funding.
Property firm Grosvener will fund an extension to the discount for its tenants in Mayfair and Belgravia.
Struggling city centres
However Simon Emeny, the boss of pub chain Fuller’s, said that while the discount has boosted visitor numbers, the next step is to tackle the problem of deserted city centres.
The mayor of London and the government should encourage safe public transport use and get people back to work, he said.
Fuller’s is yet to open 40 of its central London pubs and is waiting for Sadiq Khan to signal that Londoners and tourists should return to the capital’s business and entertainment hubs before deciding to reopen those venues.
“We need to see those positive signals from the mayor right now,” he told City PM “The focus now needs to be getting people back into city centres.”