Covid and Lockdown wipe out hospitality sector; wasted 60 million worth of beer and food

Covid and Lockdown are reported to have completely wiped out the hospitality sector. The Drinks Industry Group of Ireland (DG) points out that millions of euros have been wasted on beer and food.

Covid controls have pushed the entire sector into huge losses. The DG also says it has already written off more than $ 60 million worth of stocks in hospitality businesses.

DG analysis says pubs and bars have endured the longest lockdown in the European Union. The hospitality sector is facing huge losses as the sector is yet to open and restore their business.

On three occasions, there have been hints from the government that ‘wet’ pubs and catering pubs will be allowed to reopen after the lockdown, and even dates were announced.

On each occasion these created hope and loss for the region. They pumped in a lot of money for stockpiling large quantities of beer and other foodstuffs and deploying staff in anticipation of the opening. But everything was in vain.

Beer and food stocks alone lost 20 million euros. 7 million euros worth of beer was wasted in Dublin pubs alone.

A recent survey found that about half of pubs owe 16,000 at the time of lockdown to cover staff and business expenses. It is estimated that one in five companies owe 30,000 each.

Pubs and restaurants in Dublin are on the verge of collapse, with recent restrictions in place.

Liam Reid, chairman of the DG, said the minimum loss to the hospitality sector was estimated at 60 million euros. Reid added that the actual loss is estimated to be several times than this estimate.