The gastronomic industry is losing 414 million crowns in sales every day since closing. By the end of the year, according to experts from the research company Nielsen, the drop could be up to 70 billion crowns. This was stated by Jakub Špika at Thursday’s virtual press conference. According to him, summer did not compensate for the spring declines and autumn brings other significant losses. The steepest drop in sales was recorded by bars.
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“Already the spring season was very difficult for restaurants and pubs and only with all their might they managed to overcome it. In addition to home sewing of drapes, the dispensing windows have become a symbol of spring. Even so, sales reached only a fraction of the standard level and no special government support was received. The autumn round of restaurant closures means that more than half of them are on the verge of collapse. According to health and statistical data, the gastronomic sector is not one of the risk areas for the spread of the coronavirus epidemic, “said Tomáš Prouza, President of the Confederation of Trade and Tourism of the Czech Republic.
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“Unfortunately, in essence, it is not just about gastronomy, but we see a connection with other sectors, such as food or tourism. As for, for example, beer producers, retail sales did not in any way compensate them for the loss of restaurants and pubs, “he added.
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According to Špika from Nielsen, the HoReCa segment, hotels, restaurants and cafés, recorded a loss of CZK 28.2 billion in sales in the spring. The biggest drop, 58 percent, was for food, for beer it was 11 percent, for hot drinks ten percent. According to Špika, the prediction that they would be balanced by summer did not come true.
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In the year-on-year comparison of the period from January to September, this year was in decline. In the case of beer, the decrease was 22 percent compared to last year, in the case of non-alcoholic beverages 26 percent and in the case of spirits 31 percent.
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According to Špika, after the first wave of the disease, 98 percent of companies reopened. In the case of bars, their decrease was recorded by ten percent. Bars lost 42 percent of sales. In both cases, there was a two percent drop in restaurants and pubs. In the case of sales, restaurants recorded a decline of 23 percent compared to last year, pubs 22 percent.
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98% of HoReCa outlets reopened.
Last year’s revenues of the industry amounted to 195 billion crowns, due to the previous development, which according to Špika had a growing tendency, this year under normal circumstances would reach over 200 billion crowns. However, due to the coronavirus pandemic and related government measures, the industry must expect a loss of 60 to 70 billion crowns by the end of the year. According to Špika, this is more of a sober estimate.
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The hotel and restaurant association said in mid-October that it was asking the government to extend its Antivirus or COVID rental programs. According to her, it is also necessary to continue deferring loan repayments. Trade unions and associations also said at the time that a third of restaurants are now completely closed and that number is growing dramatically. Thousands of people have lost their jobs in the industry and more are being added every day.
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Restrictions on stores persist
In stores that can now be opened, the limit on the number of people per area applies from Wednesday. One person will have to have a space of 15 square meters for himself. The defined area concerns customers, staff are not included in it.
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The regulation is part of a new anti-epidemic system (PES) introduced by the Ministry of Health last week. Representatives of retailers criticize the regulation, according to them it will increase the risk of infection. The mobility of people will increase, panic shopping is imminent, said Tomáš Prouza, president of the Trade and Tourism Association (SOCR). And the Minister of Industry and Trade, Karel Havlíček, has already announced that he will propose mitigation of measures.
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According to Prouza, SOCR has repeatedly warned the government that the limit of 15 square meters is not professionally justified and will cause a concentration of people in front of stores. In addition, it will increase the mobility of customers who will move between stores and look for the shortest line. 20 to 30 percent of people will not be served at all due to the restriction, Prouza claimed, and other customers will wait up to an hour in line in front of the store during rush hour. However, this was not confirmed in most places on the first day of the measure’s validity.
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In the Czech Republic, retail sales have been banned since October 22. Exceptions are groceries, pharmacies, drugstores, opticians or florists. Shops can be open from Monday to Saturday until a maximum of 20:00, on Sundays most stores must be closed.
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A maximum of two people can enter the shops, they must keep a two-meter distance from the others. Disinfection is available to customers at the entrance, and the use of disposable gloves is recommended for unpackaged goods. Sellers prefer cashless payment.
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Hotels and restaurants in trouble
However, due to coronavirus measures, all hotels and restaurants in the Czech Republic are currently in trouble. The information was confirmed by the president of the Association of Hotels and Restaurants of the Czech Republic (AHR) Václav Stárek. According to him, domestic tourism expects a drop in consumption of 160 billion crowns this year. According to him, the current situation will rewrite the maps of tourism, similar to the situation after the terrorist attacks in the USA on September 11, 2001.
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According to him, the general estimates say that up to a third of restaurants and accommodation facilities could go bankrupt, but so far he has described the number as premature.
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“It is important now that those who can survive survive this period. According to our outlook, if foreign tourism does not come, foreign tourism will gradually start to revive probably in the second quarter of next year, while domestic tourism will gradually recover in January, “said Stárek. According to European estimates, tourism will reach the level of 2019 in 2023 or 2024.
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At Thursday’s press conference, Stárek also mentioned the catering services sector. “Even though there is not much talk about this service, it is an important market segment,” he said. “Sales fell by more than eighty percent. At present, this business simply does not exist, “he added.
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What support really works?
The expert advises: “Go to the restaurant windows for food. It is the only option that will keep the entire revenue from the purchased food directly in the company. If a person orders a service that mediates delivery, there is significantly reduced sales for the restaurant itself, “explains Tomáš Prouza at a press conference on Thursday.
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Fall in sales of establishments in the Czech Republic.
In addition, according to chains operating on the Czech market, Czechs’ purchases in food chains correspond to the fact that schools and restaurants are closed. Demand is for fresh goods such as fruits, vegetables or meat. In some places, they have already seen a higher interest in wine, and beer sales have also grown significantly.
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Even so, Czech breweries expect year-round declines in sales in the tens of percent. The largest manufacturers expect a decline between 20 and 40 percent, the smallest by more than 50 percent. This is stated by the Czech Association of Breweries and Malthouses. A survey of beer producers in late October found that a third – mainly large producers – were considering layoffs.
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Compensation for sales losses in the on-trade market.
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