How will Brexit affect the hospitality industry?(Final project)

22 May How will Brexit affect the hospitality industry?(Final project)

The project gives an insight into the hospitality industry and illustrates the obstacles that restaurants face and may face in the future because of Brexit . The aim is to explore whether the general speculations about Brexits affect on the industry were actually true , and to show people the inside of the industry , with its difficulties and ways to handle them. As well as now , due to the crisis , give a little insight to how Covid-19 has also affected the industry , and Heritage restaurant in London in particular.

The target audience is the general public with an interest in the field , as well as people from the hospitality industry and farmers.

 

Brexit will affect many industries , but hospitality will be affected the most. Imagine you are sitting in a restaurant , lets say Italian , and you don’t hear the foreign ‘Italian’ accent , the chefs and the waiters are all from UK. Before you would have been able to feel the atmosphere of Italy, enjoy their self expression, their loud voices,and for the time being in the restaurant , immerse into a different culture without travelling. Even though the menu would have the Italian dishes , everything needed for them have been sourced from around the UK .

However this may not be the case in the nearest future. Nobody knows for sure what is going to happen after the 31st of December , as that is the finish due date of the transition period that has started right after the Brexit day.

I think that Brexit’s biggest impact on hospitality industry is that we are seeing and going to see a big staffing shortage.”

Aarik Persaud, Executive Head Chef at Heritage restaurant

Besides the pressure of Brexit on the hospitality industry, and particularly on workforce as Chef Aarik mentions, the current situation with the pandemic complicates things. As all the restaurants are closing or are already closed , the EU workers are moving back to their home countries, and the question that remains is whether they will return back after the virus.

Heritage is a restaurant with a Russian owner, international staff and a modern Swiss cuisine , and the problem it faces illustrates the impact of Brexit on the whole industry .

It is now closed ,but most of the interviews were filmed before the crisis , when Brexit was the only issue for the hospitality industry.

About the effects of Covid – 19 on the restaurat ,Dmitry Filimonov- the owner of Heritage restaurant – says, “Everyone who was hired in February and before were sent on furlough. We are using government retention scheme to pay our our employees 80% of their salary until £2,500 a month.”

“We will be taking numerous measures to protect our clients and employees from Covid – 19. Masks and glavoes for kitchen and service staff. Disinfecting tables and chairs after clients. Maintaining social distancing between the tables . Creating working groups of employees to avoid cross contamination.

Dmitry Filimonov

EU workers


Brexit may have an impact on labour and quality of workforce , especially since in hospitality business in UK a lot of people are from different nationalities , and thus “There maybe a lack of availability after Brexit”, says Chef Aarik.

According to a 2017 KPMG report, Labour migration in the hospitality sector, 75 per cent of waiters in London are EU nationals.

” First of all , all EU citizens that already work in UK have recieved a 5 year visa prolongation . So it wont affect dramatically restaurant labour in a short term. In a long term with new rules of applying for a working visa in the UK it will become more difficult to find EU citizens at junior positions.”

Dmitry Filimonov , the owner of Heritage restaurant
The recent quarantine due to Covid-19 will also change the game as a lot of companies especially at low margin businesses like hospitality will shut down which will create a huge supply and low demand for hospitality workers.”

Dmitry Filimonov

How the food supply may be affected


But not only the frontline is affected. A lot of restaurants rely heavily on local products as they are highly demanded by the customers. The growing consumer demand for local products has started in around 2015, and according to the research provided by Gov.UK , nearly 80 per cent of people saw buying local food as a top priority.

Imagine coming to your favourite restaurant and ordering your favourite dish, but hearing from the waiter that it is not available for order due to the lack of local products that are essential for that dish.

However there has been a lot of speculations about the fact that after Brexit the government subsidies to local producers , such as farmers , will be cut, which will therefore result in a shortage of those ‘local products’, thus affecting restaurants.

Farmers are concerned that after Brexit they will be undercut by cheap imports from the US and Asia , with lower food safety and animal welfare regulations.

” We are really relying on the details of trade deals , that would be critical.”

Geoffrey Williams , owner of a farm in Cornwall

And with the pandemic effect on the farming ,Although Geoffrey is an animal farmer , he says the farmers that are involved with soft fruits , flowers and some vegetables will be hit harder.

Travelling and Tourism


In the long term ,Brexit will also affect tourism , which can have a direct impact on hospitality, restaurants in particular.

Brits may start spending more holidays in the UK, which will lead to an increase in spendings, and an increase of customers that would go to restaurants.

On the other hand , due to the currency , it is likely that citizens of the EU would be less attracted to visit the UK , which would result in a decrease of spendings.

It might however be the case that those two factors will outweigh each other , and the hospitality business will not be affected as much by those constituents.

Overall , only time will show the direct impacts of Brexit on the hospitality industry. After the transition period workers in the industry would be able to clearly see the obstacles that they would be facing, and come up with solutions to tackle those problems.

https://lsbu.shorthandstories.com/how-will-brexit-affect-the-hospitality-industry-/index.html

Valeriya
22nester05@gmail.com