File picture of people enjoying a drink in Soho on April 12, 2021
(Picture: AP)Desperate London hospitality bosses say they are being forced to put staff on zero hours contracts because of the devastating impact of the rail strikes on their businesses.
With the commuter rail network all but shut down for the fourth day in succession on Friday and further disruption on Saturday, restaurateurs, thousands of bar owners and hoteliers are having to cope with a bleak start to the New Year.
The City has been particularly badly hit with the number of commuters down nearly 60 per cent on a “normal” day according to data from Transport for London.
Dean Culpan, general manager of the South Place Hotel near Moorgate, said occupancy rates were down at 25 to 30 per cent this week, even lower than during the Omicron covid outbreak a year ago. As a result he said “we have had to reduce staffing hours by 40 per cent, we are starting to look at more flexible working contracts for new recruits and that means 20-hour contracts and even zero hour contracts.”
Ranald Macdonald, founder and managing director of Boisdale, which has restaurants in Belgravia and Canary Wharf, also said staffing levels were being hit by the huge loss of trade.
He said: “The rail strikes are a cruel and heartless blow to the hospitality industry and many other business sectors. The strikes scheduled during December were particularly callous. This is the one month in which many in our industry create the revenue to cover costs for the entire year.
“During the pandemic public sector salaries were maintained. We had zero income for nine months and had to make serious sacrifices. We are now suffering from soaring costs and we obviously cannot go on strike! All we can do to combat the lower footfall is rota less staff.”
Many London venues have stayed shut for an extra week or even fortnight into the New Year. Leonid Shutov, owner of Bob Bob Ricard City in the Cheesegrater tower on Leadenhall Street, said he had delayed reopening for a week.
“There’s just no point in opening... the Government offer no support, taxes are higher, costs have doubled and business is just a fraction. So how are you supposed to do the right thing by your staff, how do you avoid zero hours contracts?” he warned. Soren Jessen said his 1
Lombard Street restaurant in the heart of the City had not served a single customer throughout the whole of Wednesday “and I have never known that before in 25 years in the business.”
Kate Nicholls, chief executive of trade body UKHospitality, said the industry in London was coping with “effectively a four-week shutdown” starting with the wave of rail strikes launched on December 12 followed by an earlier than usual winding-up for Christmas, the usual holiday closures and another week of strikes. She said business was down 49 per cent in the December rail strikes and expected a similar impact this time.
Empty hotels mean that their rates have plummeted this week, with the average price of a double room down to £147 compared with £263 in the same week last year. Nickie Aiken, Conservative MP for the Cities of London and Westminster, said: “Sadly I fear this is just the start of further pain for the hospitality sector if the rail strikes continue.
“I cannot see why the unions want to destroy our economy in the way they seem determined to do.
“Less business means less taxes which means less for public services.”
Chris Hayward, policy Chairman at the City of London Corporation, said: “The rail strikes are deeply disappointing for many City businesses, especially the hospitality sector following an already disrupted Christmas trading period.
“Many small and medium businesses in the Square Mile are finally getting back on their feet as footfall rises so these strikes are very damaging.
“ I urge all parties to get around the negotiating table and find a resolution swiftly.”
