Coronavirus: Pub and restaurant chains warn of collapse in sales as punters stay away

Two of Britain’s biggest hospitality operators have warned of increasingly tougher trading conditions as panicked punters stay at home.

The Restaurant Group owns Wagamama and Frankie & Benny’s among other brands. Picture: Anna Gowthorpe/PA Wire

The Restaurant Group (TRG), which owns Wagamama and Frankie & Benny’s among other brands, said like-for-like sales had fallen 12.5 per cent in the last two weeks.

The update came alongside a warning from Mitchells & Butlers, the owner of a string of chains including Toby Carvery and All Bar One.

TRG said in a statement to investors: “In particular, our concessions business has been significantly impacted with like-for-like sales down 21.7 per cent and getting worse by the day given international travel bans.”

It now expects like-for-like sales to drop by 45 per cent in the first half of 2020 and is building a 68 per cent sales drop and a ten-week shutdown into its forecasts for the leisure, pubs and Wagamama business.

Mitchells & Butlers said that “recent trading has been severely impacted” by the outbreak. It also warned that government advice to stay away from public eateries “is now expected to lead to a further significant downturn in sales”.

However, the pubs and restaurants groups welcomed Chancellor Rishi Sunak’s proposals on Tuesday afternoon to slash business rates and give loans to firms that need firming up.

Meanwhile, Marston’s, which runs 1,400 pubs across the UK, including a growing estate north of the Border, warned that while it was not yet feeling the full brunt of the coronavirus outbreak, government advice to avoid eating or drinking out was bound to “significantly lower sales in the coming weeks”.

Shareholders are now likely to miss out on the interim dividend, which was due to be recommended in May, which will save Marston’s £20 million.