Britain’s hospitality and catering business is on the brink of survival because of the migrant exodus in the pandemic. Entrepreneurs are finding it increasingly difficult to meet the growing post-Coronavirus demand of Britons for their traditional leisure time in pubs and restaurants because there is a shortage of service staff.
Serious staff shortages have emerged in hospitality establishments amid a huge increase in bookings. At a time when UK residents are returning to their normal way of life after a protracted lockdown, companies are unable to provide all hotels and catering establishments with employees. About half of the old staff has not returned to their jobs because of Brexit and the long coronavirus restrictions.
Night Time Industries Association (NTIA) director general for the entertainment, hospitality and restaurant industry in the U.K. Michael Kill said that even establishments that have opened are unable to run on a pre-pandemic scale.
“There is an acute shortage of staff. Many workers from Europe got other jobs after Brexit and won’t be coming back,” Kill reported.
The British Beer and Pub Association (BBPA) has asked the government for “financial compensation” to get the business up and running at full capacity. Many organizations, in particular, had accumulated serious rental debts during the downtime. A government moratorium on forfeiture of tenants’ property due to debt will end on July 1.
In anticipation of the repeal of most of the bans related to COVID-19 in the UK from June 21, the number of bookings increased tenfold, said the ticketing companies. At the same time, analysts at the consulting firm AlixPartners estimated that a quarter of licensed hotels – about 25,000 establishments – are still closed. Ticket sales for various events in May rose 5.6 times in England and 10 times in Scotland, Northern Ireland and Wales compared with the same period in 2019.
The foreign labor shortage is hampering the economic recovery not only in Britain, but also elsewhere in the world. The German government at the end of May also complained about the problems (https://lenta.ru/news/2021/05/28/def/) of the catering industry due to a shortage of service personnel. Russian authorities recognized the shortage of migrants in the pandemic as a serious blow to the construction and agriculture industries. According to Oleg Komolov, an associate professor at the Financial University under the government, foreigners have stopped choosing Russia to earn money not only because of closed borders, but also because of the country’s weak economic growth and the falling ruble.