Omicron-related consumer caution will batter UK foodservice, says GlobalData

Following today’s news (16 December) that UK Omicron variant cases are skyrocketing;

Ryan Whittaker, Consumer Analyst at GlobalData, a leading data and analytics company, offers his view:

“In light of the influx of government recommendations, including recent advice to avoid unnecessary socialization due to Omicron, the hospitality and foodservice (FS) industries are certain to take a big hit this Christmas. This is traditionally one of the busiest times of the year for hospitality and FS, making up a huge portion of their revenues, and the new guidance will likely see many defer key revenue events such as work Christmas meals and parties until the new year.

“It isn’t just commercial profits FS is set to lose. Consumers are likely to choose to cook Christmas dinner at home, rather than eat at a restaurant. In a survey by GlobalData*, 40%* of UK consumers noted that they were significantly concerned about eating out at restaurants because of the risk posed by COVID-19.

“If the UK Government is forced to, once again, increase restrictions in the lead up to Christmas, the impact could be even greater — let alone if restrictions are maintained past the holiday period. In 2020, the takings in pubs, bars and restaurants fell by 79.4%** between Christmas Eve and Boxing Day, compared to 2019, as most venues had to close due to COVID-19 restrictions. While a lot has changed since 2020 — from vaccine and booster uptake to Omicron’s lower lethality but higher infectiousness — further mass closures are not outside the realms of possibility.

“It is now more important than ever for brands to ensure their restaurants are sparkling clean to reduce safety concerns. Plus, both high-quality food and experiences will be key to enticing consumers back in the new year.”

* GlobalData’s 2021 Q4 Consumer Survey, December 2021, combining answers “Extremely concerned” and “quite concerned” – UK

** The Guardian

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