After the turmoil of last 18 months licensees’ drinks deliveries are arriving late or getting cancelled because of supplier issues caused by a shortage of drivers, a scarcity of warehouse workers and no end in sight thanks to strike action planned by draymen this month and next.
The Unite Union has said they lost up to £10,000 in a year due to furlough and lack of overtime — with no pay increase for 2020, so strike action is planned for the 24th and 25th August and the 2nd and 3rd September.
Gavin Stevenson, owner of the Mor-Rioghain Group, which owns Gellions and Monty’s in Inverness and the Mains of Scotstown in Aberdeen told DRAM, “We had our delivery cancelled by Star Bars/Heineken on the first Friday of full trading after Level 0 ended, and we only had notice about it on the Thursday after 4pm.
“This was despite contacting our BDM several times during the week to check our delivery status and advising them that for such a big order we’d need plenty of advance notice if there were to be issues. As it was we were able to source beer from elsewhere, but this involved some frantic last minute sourcing of product, and then an all night work shift for a team of drivers moving stock from over 100 miles away. “
Gavin says this is unacceptable at a critical time when small businesses are attempting to get back on their feet and is putting their long-term survival at risk.
“It’s completely unacceptable that beleaguered pubs are facing these issues now in the first couple of weeks of viable trading after 18 months of Covid losses. The disruption and stress caused by the breweries lack of ability to contingency-plan is putting small Scottish businesses at risk, and given the vast resources of the big multi-national companies involved, such total failure to ensure adequate supply is inexcusable.”
Stephen Montgomery, spokesperson of the Scottish Hospitality Group, says the situation is throwing planning up in the air and adding to stress levels at what is already a stressful time.
“This is affecting everybody. Nobody can plan. That’s the issue here. I put in an order for delivery on Friday and it never showed. Luckily, my rep had bunkered some kegs so we got some on Friday night, but I had to go scrambling around for spirits and wine to get stock for the weekend. Then my wine order arrived on Saturday morning, so I ended up with double stock. “
Stephen says that this is the last thing that the trade needs after being closed for the last 18 months, with no end in sight because of the planned strike action by draymen.
He said, “It’s the panic of not knowing. It’s adding to our stress levels that have already and with four days of strike action ahead, we’re treading water and have this to contend with on top of interview no-shows in a massive staff shortage and staff resigning, staff self isolating, HMRC banging on the door looking for money, and the threat of closure, this is the last thing we need.”
And the problem is made even worse for pubs that are tied and Gavin Stevenson is calling for urgent action to resolve the issue.
“Worse still, where pubs are tied, no alternative arrangements are being agreed in advance of the delivery actually being cancelled at the last minute, leaving publicans scrambling to find supply with little or no notice and often being unable to do so.
“It is imperative that the pub companies and breweries now get their act together and resolve these delivery issues, and also communicate with customers much further in advance if deliveries are to be disrupted.”
A new petition calling for the Scottish Government to ‘tweak the tiers’ is already gaining momentum after it was launched on Wednesday 18th November by the Scottish Hospitality Group. It is part of a broader campaign across social and media to address minor changes in restrictions that could avoid business closures and redundancies.
Says the petition, “The Scottish hospitality sector is on the brink of ruin. Without a change in the government’s approach or adequate financial support, local communities will lose vital facilities and thousands of people will lose their jobs – including many young people.”
Group spokesperson Stephen Montgomery said, “This is a plea on behalf of the whole industry, not just our members. We are truly humbled by all the support we’ve had in such a short space of time but we need even more people to get behind the campaign.
“It’s vital that we send the strongest possible message on behalf of the workers, suppliers and communities that rely on Scotland’s pubs, restaurants and hotels.”
The petition calls on the Scottish Government to:
Allow licensed premises in tiers 2 and 3 to trade until 10pm with customers allowed to stay two hours for a meal
Provide grant funding for viable businesses that cannot open, such as drink-led pubs
Waive business rates until at least March 2022
Support 5% VAT across all hospitality revenue streams until at least March 2022
Set up a working group with industry to explore how best to emerge and recover from Covid19
Honour its own youth guarantee launched only a few months ago by supporting this industry
In response to a direct Scottish Government request for industry feedback, SHG suggested an extension in trading hours in tiers 2 and 3 to 10pm. By extending opening times by just a few hours, it means businesses can operate a full dinner service and bring in enough money to cover fixed costs such as rent, furlough contributions, and staff pension payments.
The group has previously asked for the Scottish Government to ‘tweak the tiers’ or publish the scientific evidence behind the restrictions on trading hours.
The group has also warned that time is running out to save Christmas for families and businesses across Scotland, with continued deep uncertainty about what this year’s festive season could look like. Businesses are calling for more help in the short- to medium-term to prevent closures and redundancies.
On average for SHG members, the government grant aid is £5100 less A WEEK than it costs to run each venue (average costs are £5800 per week and the average grant is £700 per week). That means the group as a whole is losing £1m every week of being obliged to shut or unable to trade viably.
The figures are even worse when including the costs of shutdown, e.g. wasted stock. These are an average of £2,400 per venue. Adding the shutdown costs means weekly losses rise to £1.5m across the group.
The Scottish Hospitality Group (SHG) has warned of a house party ‘boom’ and ‘Armageddon’ for the sector if lockdown restrictions are tightened. The body, whose members employ more than 6,000 people, said such measures would see many pubs, restaurants and hotels closing for good.
SHG spokesman Stephen Montgomery, who runs two hotels in Dumfries, said, “Scotland’s bars and restaurants are a vital part of the fight against the spread of Covid. If we are locked down or the restrictions on us are tightened, it will simply drive more people to socialise at home, with the inevitable increases in covid that will follow. Unlike in bars and restaurants, where there is track and trace, social distancing, personal protective equipment and strict hygiene rules, if you go to a house party, you’re just playing covid Russian roulette.”
Buzzworks Holdings managing director Kenny Blair (pictured) added, “Publicans and restaurateurs have followed Scottish Government guidance to the letter. We are a vital part of the solution to combatting Covid.
“We’re the only safe place people can socialise, and the figures from SHG members – over 1.8million customers served since July, with only 17 confirmed cases – show that the Government’s own measures are working really effectively.
“However, the clear feedback we are getting from many in our industry right across the country is that they are only just managing to stay afloat. If we have further restrictions imposed or, God forbid, another lockdown, it will be Armageddon for a sector which employs more young Scots people than any other.”
Professor Jason Leitch, national clinical director, has said that a two-week “circuit-breaker” lockdown could help Scotland reduce Covid-19 infection rates by getting the R number down and buy the country 28 days in the pandemic. Another 758 positive cases were confirmed on Sunday and the numbers of Covid patients in hospital and those being treated in intensive care is also rising.
Scottish Hospitality Group members include The DRG Group, Buzzworks Holdings, Signature Pubs, Montpeliers, Manorview Group, Lisini Pub Co, Caledonia Inns, G1 Group, Siberia Bar & Hotel, Mor-Rioghain Group, and Caledonian Heritable.
A new body, the Scottish Hospitality Group, which represents many of Scotland’s most successful restaurant and bar owners has called on the Scottish Government to immediately shut down licensed premises which flout social distancing regulations.
The newly-formed Scottish Hospitality Group (SHG) has a combined turnover of over £275 million and collectively employs some 5,500 in the hospitality industry.
The group which includes The DRG Group, Buzzwork Holdings, Signature Pubs, Montpeliers, Manorview Group, Lisini Pub Co, Caledonia Inns, G1 Group, Siberia Bar & Hotel and Mor-Rioghain Group is demanding that ‘rogue licensees’ who fail to enforce social distancing regulations should be shut down immediately to safeguard the wider industry.
Award-winning hotelier Stephen Montgomery, spokesman for the SHG, who runs two hotels in Dumfries and Galloway, said, “We have been forced to act because our industry is facing an existential crisis.
“The vast majority of bars and restaurants in Scotland have been adhering religiously to every regulation that has been introduced because we realise the very future of our industry is at stake.
“The Scottish Government simply must not take a blanket approach if a few rogue licensees fail to do the right thing.
“All members of the SHA are united in calling on the Scottish Government to immediately shut down the operators of bars and restaurants who don’t adhere to the very highest standards of social distancing, PPE and other essential hygiene measures.
“Targeting the few bars and restaurants which are breaking the rules is the proper and proportionate way to proceed. Responsible bar and restaurant owners across Scotland are also essential to the effective use of the track and trace system. If you shut down restaurants and bars, you’re massively increasing the risk of more house parties and irresponsible gatherings, where track and trace is almost impossible.”