Some of the biggest names in the North East’s food and drink scene are calling for emergency measures to help protect the future of the sector.
Almost half of companies surveyed by the Food and Drink North East group (FADNE) say they will not be able to survive more than three months if the current lockdown conditions continue.
Most pubs, restaurants and cafes have closed as part of the measures to slow the spread of the coronavirus lockdown, though some have been able to offer a takeaway service.
But it has been warned that pubs and other places where people congregate might be the last to be allowed to re-open, sparking fears for the future of a sector that supports thousands of jobs in the region.
Now members of the North East food and drink scene have called for food and drink businesses to be given a nine-month rent holiday, with the Government helping landlords by providing a matching loan and a postponement of interest payments.
The call has been backed by veteran Newcastle restaurateur Terry Leybourne, Adam Riley of Riley’s Fish Shack and Dave Stone, MD of Wylam Brewery.
Jessie Jacobs, newly appointed director at FADNE said “Although important Government measures have been implemented, which have been well received across most of our sector, it now needs to go further in order to protect the industry and many of our known and loved hospitality companies across the North East.
“Our food and drinks sector are the lifeblood of our towns, cities and villages. We must do all we can to protect it.
Most Read
“The Hospitality Union has launched an initiative that FADNE are asking the people to get behind, in order to protect thousands of hospitality businesses and jobs here in the North East with no cost to taxpayers.”
FADNE consulted its network of 500 food and drink business and found that they expect to lose an average of £200,000 due to the coronavirus lockdown, while 76% of businesses expect the pandemic to put at least five jobs at risk and only 9% said they could survive more than six months.
Food and drink businesses have been among those benefitting from Government grants to help companies in the leisure, retail and hospitality businesses. Around £400m has been distributed by councils in the North East.
Jamie Sadler, MD of the Harissa restaurant in Newcastle, said: “The National Time Out proposal is essential if we and others in the sector are going to survive the next 12 months.
“Without such support, there is a strong possibility our business will not survive, it really is essential.”
Among the businesses backing the campaign are the Cook House and Hjem restaurants, Tyne Bank Brewery and Cullercoats Brewery.