Launch after Lockdown

Words by: Liam Barrie Restaurateur & Co-Founder Lerpwl

The acknowledgment was that we would learn a lot as we embarked on the opening of Lerpwl. For Ellis and myself, it was the accumulation of 10 years of work, learning about the restaurant industry, and learning about ourselves in equal measures. Lerpwl is us, it isn’t our name on the face of someone else’s project. We knew we were taking on the biggest project of our professional development, we couldn’t have anticipated the scale of the challenges we would face.

The obstacles faced have been unprecedented, but so too has been the cooperation and support experienced whilst witnessing the hospitality industry being gutted by COVID-19 and the consequent Government actions.

Back in March, the Government implemented the ‘lock-down’, halting the completion and launch of Lerwpl, that had to wait until September. In that time we had to learn what the new face of hospitality would look like, to foresee how the industry would re-emerge from the Government imposed lockdown and operate in a field of new restrictions. At this stage, our existing business, The Marram Grass, our new business Lerpwl and the way we imagined our business structure, how the businesses interacted with each other, and support the teams involved, all completely disintegrate. Government support delivered us time to work things out, but with teams on furlough and a new trading environment yet to emerge it was very much a moment of purgatory,

The pressure that we have faced has not simply been entrenched in the moral obligation to carry forward our teams and the remnants of our once successful business, hospitality has found itself in the focus due to its significance within the wider economy. Prime real estate, city finance, HR services, and the employment of almost four million people all over the country all revolve around hospitality and it’s a culture of service.

Many of our relationships have evolved in how we mutually respond to the COVID-19 challenge and its force in making new ways of working together. The shared responsibility of our finance providers and landlords has been staggering. Those sectors and businesses willing to innovate in their interactions with a new hospitality model acknowledge the staggering threat faced to our whole economy if the industry sinks. It isn’t just the chains that we’re talking about, arguably it is in the independents that are better faced to survive with the right support and backing, offering employment in the remotest parts of the country and acknowledgment of the importance of their contributions to service companies in the cities.

In contrast, not all associated businesses have adopted a new outlook and shared responsibility for the challenge ahead. A prominent HR company instigated legal proceedings over a disputed monthly payment with barely a blink, the irony of a ‘personal touch’ and ‘helping us get back to business’ has not been lost on us! Such a sense of entitlement confirms my dedication to forging a future built on cooperation and recognition of the value of genuine business partnerships.

We have witnessed our restaurant launch period dissipate from being at +80% occupancy across the initial 3 month period to -70% occupancy. Each new restriction imposed has shattered customer confidence and diminished potential takings, yet the level of support required, not to replace the lost revenue, but to keep afloat, has not materialised. The Job Support Scheme helps but it doesn’t financially support businesses; the central government grants don’t go far enough to protect businesses that haven’t been closed. The big issue for the industry is the debts that have been deferred, whether via debt moratorium,

the HMRC deferral of VAT, or personal negotiations. This is the ticking timebomb at the heart of the hospitality industry. At the moment the industry is positioned merely as a mechanism to feed the landlords and financial/ HR service sectors.

To affect change the Government should provide multiple points of support. Considering the initial levels of support, hospitality is still facing huge pressure to meet the demands of associated industries. Deferrals of rent and tax still overhanging the performances as we accrue new, expected overheads. The hospitality industry is being encouraged to work considerately and slowly, to learn and adapt to new policies and rules and also police itself and customers, all whilst relying on realising every penny to meet the demands of the areas that central government support has not yet reached.

A new collaborative approach to working with the hospitality industry is required, that is why we must support the calls for a new role in the Minister of Hospitality. Hospitality is not the end of the food chain, with costs and demands to be passed onto customers, hospitality is part of the conversation in a post covid thriving economy. It is not just the chef and the restaurateur that puts the food on the plate, there is a whole team of people on the ground, there are contributing services from designers, musicians, taxi drivers, florists, butchers, fishmongers, farmers.

Now the long winter is upon us and the Government is acting as it has the collaboration of nations, regions, cities, and councils for the economy is paramount. The hospitality ‘economy’ being both international and local needs nations, regions, and cities to work it out! The very collapse of ‘the food chain’ is at stake!!

On behalf of Liverpool Hospitality, a non-for-profit organization dedicated to representing the collective voice of LCR Hospitality Industry, we call for your support. 2020 is going to be remembered as one of the hardest ever chapters in human history. There is no denying that it has been a challenging year for everyone. We have all been affected by this ongoing situation, however, we have not all been affected in the same way; some people and businesses have struggled more than others.

It is common knowledge that one of the most profoundly affected industries by COVID-19 has been Hospitality. Despite being classified as ‘non-essential’, we employ over 50,000 people in the LCR and we contribute to over £4bn to the local economy on average every year. Our industry also supports wider supply chains that rely heavily on our businesses. So, when we talk about being one of the worst industries affected; we mean jobs, livelihoods, families and people from our industry and beyond.

Our city region is world famous for its thriving culture and strong sense of community due to the warm, welcoming and caring personality of our people. We stick together and support each other through the good times and find strength in adversity. We hope you know that you can count on us, as much as we know we can count on you and that is why we are reaching out. Humans are social beings and therefore the role of Hospitality in society is more than just creating jobs; we enable people to experience and build happier memories with their loved ones. Yes, technology has proven to be a great tool to help communicate with each other and work remotely, but it will never be able to replicate the feeling of togetherness and belonging that only real human connection provide and real experiences facilitate. Keeping our community safe and supporting the NHS is our priority and we can guarantee that we are doing everything in our power to keep our venues safe for everyone. Nevertheless; operating at a reduced capacity, observing a curfew, additional safety measures, new equipment and technologies, training, re-training...These all come at a cost and they all require investment of both money and time – both which are getting scarcer and scarcer forcing more and more of our hospitality venues to close their doors.

We are fighting to keep our staff in their jobs to be able to hang on in there. So when we all meet at the other end, our businesses are going to be there to welcome you all back for those after work drinks, unforgettable Christmas parties, special birthday and anniversary celebrations, celebratory graduation ceremonies, memorable wedding receptions... But for this to become a reality in the future, we need all the support that we can get, now. There is no doubt that Christmas will be very different this year, but that does not mean it has to be cancelled. The festive season is always one of the most exciting times of the year for everybody and Christmas parties have been a great way to recognise employees’ hard work. We know this will not be possible this December, but there is a way of keeping this tradition alive. This year, the small act of gifting your employees with hospitality gift vouchers will go a long way in supporting the businesses that make our region such a destination. Most of our vouchers are valid for one year and although we do not expect everyone to redeem them straight away, this simple gesture will have a hugely positive impact on our businesses now whilst giving us hope and prospects for the future - one where COVID is no longer a threat to our society and the LCR will be thriving once again. We thank you immensely for your continued support and we know we will get through this, together.

Sincerely,

Marcus Magee Liverpool Hospitality Chair Paul Askew Liverpool Hospitality Co-chair