Young's to delay reopening pubs until August
Young's is banking on the relaxation of strict two-metre social distancing rules by August as it prepares to reopen pubs.
The firm - which has almost 300 sites across the UK - said it will be unable to turn a profit if forced to operate under the restrictions and will not return to work on July 4 when pubs and restaurants have been told they can start to operate again.
Patrick Dardis, chief executive of Young’s, warned that the Government risks wasting billions of pounds spent on emergency support if companies are still crippled by restrictions when the lockdown lifts.
Britain is insisting that customers stay two metres apart to halt the spread of coronavirus, despite the World Heath Organisation (WHO) and many other European countries saying that a one-metre gap is enough.
The regulation could make a difference between pubs staying afloat or being forced to close forever because they cannot serve enough customers to be viable.
Mr Dardis said: “We're delaying the reopening because we feel that if we give our customers and our staff more time to get back to normal it will give the government more time to relax the social distance rules to one metre.
“The one metre [rule] is good enough for the Danes, French, Italian, the WHO [World Health Organization], it’s good enough for us.”
It came as pub operator and brewer Adnams warned it will suffer a substantial loss at its half-year results due to the huge impact pub closures have had on its business.
Industry trade body UKHospitality has warned that as many as one million jobs could be lost across the sector if the two-metre rule is not relaxed.
Reopening with a one metre distance in place would allow firms to operate at between 60 to 70pc of normal revenues, compared with 30pc at two metres, it said.
Mr Dardis said cash will not be accepted at its pubs for the foreseeable future, and orders will be taken by staff using tablet devices at tables or standing areas.
Food menus will be thrown away after each use or displayed on a blackboard, and customers will be banned from propping up the bar after ordering a drink.
A thorough cleaning and sanitising regime will be in place and staff will be provided with face masks but these will not be mandatory, Young’s said.
Young’s posted a 2.6pc rise in sales to £311.6m for the year to March 30, but said it lost £13m of sales toward the end of the period as fears grew over the virus and its pubs were forced to shut under lockdown.
Profits were also hit, falling from £39.5m to £29.1m. Around £7.7m was lost during the period due to the pandemic, Young’s said.
The company has taken measures to free up cash by putting almost all staff on furlough under the taxpayer-funded job retention scheme. It has also cut directors' pay by a fifth.
Young's waived rents for its tenanted pub landlords for three months in March. This has since been extended by a further month for the majority of tenants.
Mr Dardis expects trade at Young's pubs to return to normal levels by April 2022.
Shares dipped 1pc, valuing the company at £480m.
