Breweries in Leeds fear for future as sales up to 50% down in December

Pubs, bars and restaurants lost £10,335 on average in the week leading up to Christmas, according to new data.

On Christmas Day takings across the country were down 60% compared with 2019, new figures from industry body UKHospitality found.

The average losses are above the maximum £6,000 cash grants offered to each affected venue by Chancellor Rishi Sunak as part of his £1 billion fund announced last week.

Mark Costello, 37, is owner of Horsforth Brewery on New Road Side which sells beer, wine, gin and cocktails.

Speaking to the YEP, Mark said October was "amazing" for his business - selling the most beer in their history by "a long way".

November was quieter and Mark was pinning all his hopes on a buoyant December.

However, Omicron has put a hold on the rapid success of the business.

"We brewed a huge amount of beer for cans, cask and keg, got all ready for it to be a good one then omicron changed the whole thing", Mark admitted.

"The majority of our customers weren’t busy, a lot hadn’t had chance to put our beer on that we delivered in November so we couldn't shift the beer we’d brewed for the Christmas run in and people started to reduce their exposure to others to make sure they got a Christmas."

Mark said December has taken "all his energy" and it was "heartbreaking that it hasn't been enough".

"All this meant we put our New Year's Ever plans on hold because we needed to focus on trying to increase sales in December and we didn’t know what was going to happen.

"Ultimately we are going to open but we’re going very much with a nice chilled out vibe.

"No tickets, no queue to get in, free nibbles, and see the new year in with your loved ones in a relaxed atmosphere.

"I was saying as early as August that we needed a great December to see us through.

"Unfortunately we had a bad December.

"Thankfully we have the ability to can our beer, without that and the taproom support I don’t know what we would have done.

"We will survive in 2022 but it’s been far closer than is comfortable and we need a better year than 2021."

Amity Brew Co caused a storm of excitement in Farsley after opening their inside facilities for the first time ever in 2021.

Speaking to the YEP, founder of Amity Brew Co, Russ Clarke, 37, said they had been fortunate to have a "pretty good turnout" over the festive period.

But he warned that sales were down by 50 per cent on their forecasts for December.

Russ put this down to "customer confidence" due to the messaging from the government.

"Go out but don't go out?", Russ said.

"This has the feeling of March 2020 all over again and has massively impacted the business, especially on trade orders from bars and restaurants who now don't know whether to order stock in due to the daily change of messaging and the threat of a potential lockdown should the data go that way.

"Hospitality needs more support beyond what the Chancellor has promised.

"The "up to £6,000" won't touch the sides in our business, and won't pay wages - it certainly won't be rolled out quick enough in order to help in any meaningful way.

"December is meant to be huge in order to pay for the traditionally quiet January and February periods, but it's barely supporting the wage bill for December right now.

"We need more support that would impact us positively, the ability to furlough staff who joined us over 2021, the VAT level to remain at 12.5 per cent and be extended to alcohol as well, proper financial support that won't be another overhead we have to carry the burden of as we try and trade positively over 2022.

"We'll get through it and survive of course, but it's very hard trading times in what should be a busy and fun period."

Russ thanked customers from Farsley and beyond for their support during the festive period.

He added: "We're local and community focused, we think our locals and regulars are coming out to support our business because we've always prided ourselves on being as safe as possible with regards to COVID restrictions.

"Some of our customers are masking up, even though they don't need to be, and our team unanimously voted to wear masks, even thought they don't legally need to.

"It's all about making each other feel safe, and being more protected so we don't have to experience any staff being unwell and not in the business.

"We're fortunate in that we've had no cancellations for New Year's Eve, which is a mix of a sold out ticketed event and walk in space too.

"It should be a great night but we've certainly made sure that there's room for all, appropriate ventilation, and everything will be constantly sanitised throughout the evening."

December is typically equal to three months’ worth of trading, UKHospitality said, meaning the recovery in the sector and the economy more broadly could now take far longer as a result of the latest variant.

UKHospitality chief executive Kate Nicholls said: “Hospitality businesses have been hit hard during a key trading period – and this after missing out on the crucial Christmas and New Year sales last year.

“Restrictions must be kept to a minimum and must be lifted as quickly as possible to help an already beleaguered sector or many will simply not survive – and those who do make it through face a return to 20% VAT in April.

“In order to help the industry recover and return to growth, the Government must commit to keeping VAT at 12.5% and offering enhanced rates relief.

“Further support will also be needed should additional restrictions be imposed or the tougher measures in Scotland and Wales be retained into 2022.”

Support the YEP and become a subscriber today. Enjoy unlimited access to local news and the latest on Leeds United, With a digital subscription, you see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Click here to subscribe.