{"id":193,"date":"2020-07-13T14:42:00","date_gmt":"2020-07-13T14:42:00","guid":{"rendered":"https:\/\/www.simplybusiness.co.uk\/about-us\/press-releases\/food-and-beverage-industry-at-risk\/"},"modified":"2025-12-17T15:06:27","modified_gmt":"2025-12-17T15:06:27","slug":"food-and-beverage-industry-at-risk","status":"publish","type":"page","link":"https:\/\/www.simplybusiness.co.uk\/about-us\/press-releases\/food-and-beverage-industry-at-risk\/","title":{"rendered":"Coronavirus to cost small businesses operating in food and beverage over \u00a321,000 each \u2013 with over half at risk of permanently closing"},"content":{"rendered":"\n<div class=\"wp-block-group alignfull has-no-margin hero-bg has-background has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"background:linear-gradient(180deg,rgb(255,255,255) 0%,rgb(243,243,243) 100%);padding-top:var(--wp--preset--spacing--150);padding-bottom:var(--wp--preset--spacing--150);background-image:url(&apos;https:\/\/www.simplybusiness.co.uk\/wp-content\/themes\/simply-business-uk\/assets\/images\/faq-bg.png&apos;);background-size:cover;\">\n<h1 class=\"wp-block-heading has-text-align-center has-azure-700-color has-text-color has-link-color has-max-huge-font-size wp-elements-03c75e4ef5440ecf07a2bbd20a6fa694\">Coronavirus to cost small businesses operating in food and beverage over \u00a321,000 each \u2013 with over half at risk of permanently closing<\/h1>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Coronavirus to cost small businesses operating in food and beverage over \u00a321,000 each \u2013 with over half at risk of permanently closing<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\">Small businesses in hospitality operating in food and beverage will lose \u00a321,586 each on average<\/li>\n\n\n\n<li class=\"wp-block-list-item\">Over half (55%) are at risk of permanently closing<\/li>\n\n\n\n<li class=\"wp-block-list-item\">Over half (54%) are also very concerned about the future of their business<\/li>\n\n\n\n<li class=\"wp-block-list-item\">Figures come as the hospitality sector reopened on Saturday (4th July)<\/li>\n\n\n\n<li class=\"wp-block-list-item\">Simply Business has launched a free&nbsp;<a href=\"https:\/\/www.simplybusiness.co.uk\/knowledge\/general\/coronavirus-loans-for-small-businesses\/\" data-type=\"knowledge\" data-id=\"979\">Financial Support Checker<\/a>&nbsp;to help small businesses and the self-employed to quickly determine what financial support and schemes are available to them during the coronavirus pandemic.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The impact of coronavirus to small businesses operating in food and beverage will exceed \u00a321,586 each in lost work, earnings and loan repayments, with well over half (55%) at risk of permanently closing, according to a new report.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Analysis of over 250 small businesses operating in food and beverage, within the hospitality industry, released by small business insurer Simply Business, reveals that well over a half (54%) are also very concerned about the future of their business. The figures come as the hospitality sector began to emerge from the crisis with many opening their doors on Saturday (4th July).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Not only this, but well over half (55%) of small business owners in food and beverage fear their business is at risk of permanently closing due to the pandemic. One fifth (19%) believe they\u2019re likely to close within 3-6 months, well over a tenth (15%) within 6 months to a year, and another 14% within the next three months months.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Looking ahead, the study also revealed how SMEs within food and beverage feel about life after coronavirus, with just over half (52%) worrying about losing customers and their jobs from the pandemic.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Worryingly, one third (35%) of small business owners operating in food and beverage are also concerned about running out of money, with one in three (32%) admitting they have had to borrow money from friends and family to keep afloat.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, one fifth (20%) are concerned about being able to pay back the money borrowed and one in five (18%) SME owners are worried about going completely bankrupt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The study also found that seven out of 10 (71%) SME\u2019s within food and beverage were able to apply for government grants, loans and schemes and well over a third (36%) have felt particularly supported. Only one quarter (24%) feel fully supported and just over the same amount (28%) have felt no support at all. When looking at improvements, two in 5 (39%) business owners also<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">felt there could have been greater communication and transparency from the government about the impact to small businesses and the self-employed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Alan Thomas, UK CEO at Simply Business, commented:<\/strong>&nbsp;<em>\u201cNo business has been able to escape the impact of the pandemic \u2013 and that\u2019s no different for small businesses and the self-employed. They\u2019re the lifeblood of the economy, and with many of these at risk of permanent closure, so much is at stake for our local communities and wider economy.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>\u201cFew small businesses have been hit as hard as those in the hospitality industry, and it&#8217;s clear that many will take time to recover. Small business owners and the self-employed have shown how creative, determined and resilient they are throughout the pandemic, and we know they\u2019re going to be crucial as the UK economy looks to bounce back.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>\u201cWith many pubs, bars and restaurants now able to open their doors again, we\u2019re hoping to see hospitality businesses begin to emerge from the most challenging period and start to get their livelihoods back on track.\u201d<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Simply Business has launched a free&nbsp;<a href=\"https:\/\/www.simplybusiness.co.uk\/knowledge\/general\/coronavirus-loans-for-small-businesses\/\" data-type=\"knowledge\" data-id=\"979\">Financial Support Checker<\/a>&nbsp;to help small businesses, landlords and the self-employed to quickly determine what financial support and schemes are available to them during the coronavirus pandemic.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A simple questionnaire takes business owners just a few minutes to complete and will point them towards relevant government financial support.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">-Ends-<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Methodology: Data: Survey of 240 food and beverage small business owners from across the UK, conducted May 2020<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">How did we calculate the \u00a321,000 figure?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">100% of small business owners surveyed reported being affected financially by the coronavirus pandemic.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We asked small businesses how much they estimate the coronavirus pandemic will cost them in total, including lost earnings, jobs and revenue. The weighted average of this cost is \u00a321,586<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">For further information, please contact:<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Frank PR<br><a href=\"mailto:SimplyBusiness@welcometofrank.com\" target=\"_blank\" rel=\"noreferrer noopener\">SimplyBusiness@welcometofrank.com<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading wp-block-block\">About Simply Business<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a target=\"_blank\" href=\"https:\/\/urldefense.com\/v3\/__http:\/simplybusiness.co.uk__;!!N96JrnIq8IfO5w!hIDMrGse3KHfJu5_CiqiOsFWnj8k1HROe8Oqz7zCb7P2qVQXkH81IbN1SpIhNqbbhmdQrc22NsXe3U9O5ajDdkHOTa_CgxPfLGQ$\" rel=\"noreferrer noopener\" rel=\"noopener noreferrer\" target=\"_blank\">Simply Business<\/a>\u202fis one of the UK\u2019s biggest business insurance providers, specialising in public liability insurance for small and midsize enterprises. Launched in 2005, Simply Business provides an online brokerage service, delivering policies tailored to individual business requirements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using the power of tech and data to create the best possible customer experiences, Simply Business employs over 1,200 people across offices in London and Northampton, UK; and in Boston, Massachusetts; and Atlanta, Georgia, in the U.S. Owing to the insurance provider\u2019s internal underwriting capability and expert panel of insurers, Simply Business can cover over 1,200 trade types \u2013 ranging from plumbers to accountants to dog walkers.\u202fIts UK brand campaign \u2013 \u2018<a target=\"_blank\" href=\"https:\/\/urldefense.com\/v3\/__https:\/www.simplybusiness.co.uk\/campaign\/small-businesses-deserve-our-best\/__;!!N96JrnIq8IfO5w!hIDMrGse3KHfJu5_CiqiOsFWnj8k1HROe8Oqz7zCb7P2qVQXkH81IbN1SpIhNqbbhmdQrc22NsXe3U9O5ajDdkHOTa_CxklTDMU$\" rel=\"noreferrer noopener\" rel=\"noopener noreferrer\" target=\"_blank\">Simply The Best<\/a>\u2019 \u2013 aims to help UK small businesses feel \u2018the best\u2019 about their business insurance.<\/p>\n\n\n\n<div class=\"wp-block-group has-azure-800-color has-cyan-100-background-color has-text-color has-background has-link-color wp-elements-101cbde2ee0c57c7d6d0d48cbb8134b8 has-global-padding is-layout-constrained wp-container-core-group-is-layout-80fb368b wp-block-group-is-layout-constrained\" style=\"border-radius:8px;padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<p class=\"has-text-align-center wp-block-paragraph\">We create this content for general information purposes and it should not be taken as advice. 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operating in food and beverage over \u00a321,000 each \u2013 with over half at risk of permanently closing Coronavirus to cost small businesses operating in food and beverage over \u00a321,000 each \u2013 with over half at risk of permanently closing The impact of coronavirus to small businesses operating in food and 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