London pubs reopening: Young's announces plans to serve pints again -with major conditions
PUB chain Young's has set out plans to begin reopening premises next month as it bids to bounce back from the coronavirus pandemic.
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The company has 276 pubs, mainly in London, and hopes to be in a position where they can be open for business by the middle of July. Failing that, it plans to have all sites open by August 3. In a bid to reduce the risk of infection, the pubs will implement a one-metre social distancing rule, rather than the two metres currently in force across the country.
I am looking forward to all of our team reuniting, opening the doors to our great pubs and welcoming back our customers once we are through this
Chief executive, Patrick Dardis, said: "One thing we can be sure of is that at some point the pandemic will pass.
"The fabulous weather we have experienced so far this spring has been a gentle reminder of the enormous opportunity our business has to bounce back once it’s safe for the Government’s restrictions to be lifted.
"I am looking forward to all of our team reuniting, opening the doors to our great pubs and welcoming back our customers once we are through this."
The company today said it expected its 2021 full-year performance to be significantly lower than average after posting lower annual pretax profit due to coronavirus-led closures.
Pretax profit slumped 24.3 percent to £29.9 million for the year ended March 30.
Young's, which traces its roots back to 1831 as a brewery and pub company, said it expects sales to return to more normalised levels in fiscal year 2022.
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A company spokesman said: "Closure of our pubs for the final 10 days of the financial year and the preceding downturn in trade resulted in an estimated £13million shortfall in revenue."
Last month, the company's creditors replaced its financial covenant tests with an additional monthly £20million pounds available liquidity test until June next year.
It also secured extra funding, furloughed over 4,500 staff, cancelled its interim dividend and now has in place £285million of funds and committed facilities.
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The management believes its pubs can operate at about 70 percent of normal levels, but likely with some more conservative phasing in the initial few months, assuming social-distancing measures of one metre, Mark Irvine-Fortescue, an analyst with UK brokerage Stifel said.
The impact of the coronavirus pandemic on the UK's pub industry has been unprecedented.
Speaking last month, Emma McClarkin, chief executive of the British Beer and Pub Association, said: "I am very, very worried about the sector.
"If you are looking to reopen pubs at the end of summer, it is looking very stark indeed.
"We could be losing 40 percent of our businesses if they do not open by the end of September."
Worryingly for the industry, there is significant evidence that people are likely to be reluctant to return to bars and restaurants even once the lockdown is lifted fully.
An IpsoMORI poll published on May 1 suggested just 29 percent of people would feel comfortable in such settings.
Young people were most at ease at the prospect of going out to eat and drink.
The survey suggested 36 percent of 18 to 34-year-olds said they would be happy to do so, compared with just 22 percent of those aged 55 to 75.