Brighton and Hove needs a plan for hospitality industry

Although it’s easy to point the finger of blame at the Covid crisis, hospitality businesses were already building up to a perfect storm.

As seen in the closure of high profile mid-market chains such as Jamie’s Italian, Carluccio’s and Byron, the signs of a downturn in the industry were already growing in 2019 with inflated property rents, business rates, produce costs and wages.

The lockdown certainly didn’t help matters.

“The hospitality sector was not prepared for the scale of fall-out of Covid or the concept of lockdown,” said Olivia Reid of Brighton-based hospitality consultancy Blackbirdbox.

“As a sector dependent on people mixing and mingling, the impact was financially and visibly harsh.”

Fortunately, some more forward-thinking businesses had already identified that their operational model needed to change.

For Euan Sey of Curry Leaf Café Cafe in Ship Street, Brighton, the lockdown presented opportunity including the launch of a new chilled ready meal delivery service across the county – it had 1,000 orders in the first month of operating to Brighton and Hove alone – alongside the established hot delivery service.

“Curry is pretty much the ultimate in comfort food and travels really well,” said Euan.

“And comfort is something I think we were all craving once the seriousness of the situation sank in.

“We already had a thriving takeaway business and were fortunate enough to have the kitchen

capacity to meet the increase in demand that followed the start of lockdown.”

“Brighton is a city of independents that have learnt to adapt to survive the industry’s constant

changes and challenges,” said Olivia.

“I wasn’t surprised to see the quick evolution to dine at home, do takeaways, charity supply and other novel food ideas to match the restrictions and changing dining culture.

“However delivery is not for every business, poor execution can be damaging for brands if approached as a temporary add-on with no great vision.”

The government seemed initially unsure of what measures could be put in place to help the floundering hospitality sector recover following the lockdown.

A drop in the rate of VAT payable by hospitality and tourism businesses from 20 per cent to five per cent had been campaigned for by the industry for many years to bring the UK closer in line with most European nations.

Olivia said it has freed up money within businesses to ensure suppliers are paid at a time when revenues are stressed.

She said: “There is no doubt that the VAT reduction has been an immense asset to the sector and allowed improved cash flow which in turn ensures consistent payments within the supply chain, which

was one of the big early day concerns.”

Messages are mixed when it comes to the success of the much-vaunted Eat Out To Help Out Scheme that ran nationally in August, with the taxpayer ultimately subsidising diners to the tune of £500 million.

Rebuilding consumer confidence in the restaurant experience was key, however there are concerns the scheme merely masked unresolvable issues in the finances of some businesses.

“The most important thing was getting people off their sofas and through our doors so they can see what a safe, cosy and welcoming space we’ve created for them,” said Euan of Curry Leaf Café.

“Whilst a success in kick-starting the return to eating out, the scheme has varying financial impact arguments,” said Olivia.

“It will only be over the next few months as to whether we discover if many businesses are actually economically sustainable moving forward.”

Brighton city centre retains a strong economy, with marginal increases in visitors and spend since lockdown was relaxed, according to research by Centre For Cities.

With more Brits holidaying at home, seaside and countryside tourist destinations have benefited economically from a surge in visitors, whilst conversely the commercial hearts of the UK’s major cities have fallen silent.

With their loyal and long-established existing customer base, Jeremy Ashpool of Jeremy’s Restaurant says his rural venue at Borde Hill near Haywards Heath has benefited from new custom, driven by home-working and people staying in their locality.

At the start of lockdown he began offering a new collection and delivery business that he continues to run alongside the regular restaurant operation.

“I like to think we were smart and lucky in the sense that we have a great rural location and a large loyal local database of clients who responded to the takeaway menus that we made available within days of lockdown,” said Jeremy.

“More people working from home should benefit rural establishments close to commuter towns.”

It is clear that hospitality isn’t out of the woods, with the fear of further Covid-related impacts alongside the looming threat of a no-deal in EU UK trade negotiations that will undoubtedly affect the supply chain in terms of produce availability and price.

Initiatives such as the Brighton Business Improvement District (Bid) will be critical to ensuring recovery and resilience.

Bid manager Gavin Stewart said: “After five years and £2 million of private sector investment, Brilliant Brighton, the city’s Business Improvement District, is consulting with businesses again to see if they want to continue supporting their city centre. This time around, we are also consulting with businesses on Brighton seafront.

“Over the next two months we will be asking owners for their big ideas of what will help continue to make Brighton a great place to live in, work and visit, whilst supporting their trading environment for years to come.”

Everyone agrees the hospitality industry of the recent past will not be the same as that of the near future.

Olivia Reid is one of the team driving forward Bite Sussex, a new county-wide food and drink project that takes hospitality online.

“Consumer behaviour has changed and will never go back,” said Olivia. “We now need to reinvent our product and stories, and utilise new technologies to meet customer expectation. As a thriving independent focused region, we have a far better ability to adapt, reinvent and reform.”