Edinburgh chefs warn of closures and job losses in hospitality sector unless government support continues

MSP wins backing for cafes to take over closed roads
Martin Wishart is among the chefs warning of the threat to the hospitality sectorMartin Wishart is among the chefs warning of the threat to the hospitality sector
Martin Wishart is among the chefs warning of the threat to the hospitality sector

SCOTLAND’S hospitality industry faces a “tidal wave of business closures and mass redundancies” if social distancing measures have to remain in place when bars and restaurants reopen, top chefs have warned.

A group including Nick Nairn, Martin Wishart and Tom Kitchin have highlighted their fears for the sector in an open letter to Nicola Sturgeon.

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And they called for financial support to be extended into next year to help businesses get back on their feet.

Their move came as MSPs agreed city streets closed to traffic during the coronavirus crisis could be used by cafes and restaurants for outside tables to allow social distancing when they reopen.

A Holyrood committee wrote the idea into the latest Covid-19 emergency legislation after Edinburgh Western Lib Dem MSP Alex Cole-Hamilton said Vilnius, the capital of Lithuania, had turned its city centre into an open air cafe as part of an effort to help businesses reopen in a viable.

Eateries would still need to get council permission to take over the road space, but Mr Cole-Hamilton said the move paved the way for “islands of sociability” in city centres and other communities across the Capital.

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“At a future date, when the science says it’s ok for us to meet friends in street cafes at a safe social distance to enjoy a coffee or a meal, there should now be no impediment to that.”

He said there were already proposals about pedestrianising some streets in Edinburgh and the potential for street cafes could now be factored into such discussions.

He suggested South Queensferry and Stockbridge as areas which might want to take up the idea.

“There are natural community hubs which already have vibrant, well-loved cafes and restaurants which are itching to get back into business on a safe basis and I hope this will give them the opportunity to do that.”

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The chefs’ letter to the First Minister spelled out the threat they saw to the hospitality sector from the crisis.

The group, which also includes the general manager of Restaurant Andrew Fairlie in Perthshire and the proprietor of The Witchery in Edinburgh, told Ms Sturgeon: “Over the past decade we have helped change the worldwide image of Scotland when it comes to food, drink and hospitality”.

But they said the “reputational change” the sector had enjoyed could now be “set back for a generation”.

Hospitality was “one of the main pillars of the Scottish economy”, they argued, employing some 220,000 people directly.

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But they went on: “As the lockdown continues and our doors remain closed with no end to that in sight, the very future of our businesses and the wider food and drink network we support is at risk.”

To help, they want the First Minister to press the UK Government to extend the furlough scheme - which pays the bulk of wages for staff who can no longer work as a result of Covid-19 - beyond its current end date in October, with “further flexibility and phasing to support businesses until at least Q1 2021”.

In addition, they want the Government to support a 12-month rent free period, with reductions “for as long as social distancing is required in our premises”.

And they said a business rates holiday should be extended until the end of June 2021 “to allow hospitality to get up and trading again”.

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To encourage Scots to come back to restaurants once the lockdown is lifted, they propose a Covid Quality Assurance Scheme so businesses can “reassure their customers about the steps that have been taken to protect them from coronavirus”.

They suggest this could be rolled out by VisitScotland in association with Food Standards Scotland and local environmental health officers.

Making their plea for help, the restaurateurs said: “Put very simply, social distancing simply does not work in most restaurants, bars and hotels.

“People visit to enjoy a memorable experience with a high level of service and personal interaction, and this could never be achieved if staff had to maintain strict social distancing and wear PPE.

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“Hospitality already operates on a high cost base. In recent years we have faced additional spending including rent hikes, increased food and beverage costs, the new National Living Wage and higher business rates.

“Social distancing will result in revenue drops that will make most businesses unsustainable.

“There is also worrying evidence suggesting many people don’t feel it is safe to eat out and will avoid visiting us even after lockdown is lifted.

“If furlough ends and restaurants, bars and hotels are allowed to reopen but with social distancing enforced and no income from major events and festivals, the result will be a tidal wave of business closures and mass redundancies, increasing Scottish unemployment and the strain on the welfare system.”

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A Scottish Government spokeswoman said the hospitality industry was vitally important economically and socially.

“We are carefully considering how we plan the restart and long-term recovery of the sector and wider economy.

“The Scottish Tourism Emergency Response Group, chaired by VisitScotland, has been in place since the beginning of the crisis and has developed a plan to respond to the impact of the virus on the sector and that work will help inform how we move forward as we slowly and carefully emerge from this crisis.

“Our package of support includes 1.6 per cent rates relief for all non-domestic properties in 2020-21 and 100 per cent relief for properties in retail, hospitality, leisure and airports.

“We will look carefully at all of the suggestions put forward and press the UK Government to ensure that the correct support is available as we come out of the lockdown.”

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