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London bar owner fears for 'zombie' industry

Bar Elba in London's Waterloo spent the summer switching things up to stay profitable during the pandemic.

It maximised its roof terrace, investing in an outdoor cinema.

And added "party pods" for groups of friends to hire.

But like others, the bar, run by Thomas Kidd and Tobias Jackson, is struggling to come to terms with new restrictions.

From Thursday (Sep 24) UK bars and restaurants must all offer table service only and close their doors by 10 pm.

Kidd, who along with Jackson owns nine venues across the capital, says the move is going to have major ramifications:

" it's already having catastrophic effects on the financial health of this whole sector. And the way the solutions have been to allow our sector to take on more debt, and then you have this pressure of debt that over time, this whole sector full of zombie companies."

The new measures could be in place for the next six months.

And come a week after the public were told not to meet in groups larger than six.

" People want to drink and they want to interact and socialise. So by creating this prohibition situation, you're going to move people out of COVID-safe environments, places where we are trained professionals who understand how to crowd control, how to socially distance people, move them out of these situations, and you're going to move them into the home, where there's no control, there's no supervision."

Other operators say this could sound the death knell for businesses that were forced to shut for 15 weeks earlier this year.

Hotel and restaurant operator Whitbread already plans to cut up to 6,000 jobs.

And on Thursday, one of the largest operators of restaurants, pubs and bars in the UK, Mitchells & Butlers, posted a massive slump in revenues.

Sales for the 51 weeks ending September 19th fell more than 35% due to closures.

Although it says it has since reopened 95 percent of its outlets.