Pub group gears up for reopening - expecting 50% drop in trade, but predicting high demand for staycations

A North East pub company has admitted that profits will be hit as it prepares to reopen with reduced capacity.
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The Inn Collection Group is planning to reopen all of its inns from July 4 if the government eases lockdown restrictions in line with its roadmap to recovery.

Sean Donkin, managing director, said: “Being closed for over three months will of course have a huge impact on profits and thus we have adapted our business model to reflect this.

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“I think that assuming that anyone will be operating close to capacity would be foolish and so we are modelling trade running at circa 50% of last year’s performance for the medium term.”

Sean Donkin, managing director of The Inn Collection Group. Its inns include The Hog's Head Inn, Alnwick and The Bamburgh Castle Inn, Seahouses.Sean Donkin, managing director of The Inn Collection Group. Its inns include The Hog's Head Inn, Alnwick and The Bamburgh Castle Inn, Seahouses.
Sean Donkin, managing director of The Inn Collection Group. Its inns include The Hog's Head Inn, Alnwick and The Bamburgh Castle Inn, Seahouses.

However, he believes there are still reasons for optimism with demand from UK tourists expected to increase as they become more confident about making trips.

“We are aiming to reopen July 4 and can imagine a large demand for staycations in rural, countryside locations,” said Mr Donkin.

“This is definitely a positive for us, but we must also acknowledge that the public are still very cautious about booking.

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“Also, the changes we have made in relation to food and beverage means there is a reduced capacity in our inns, which in turn will affect profits.”

Sean Donkin, managing director of the Inn Collection Group.Sean Donkin, managing director of the Inn Collection Group.
Sean Donkin, managing director of the Inn Collection Group.

He added: “I think that the length of the impact will essentially be forever as new mindsets of both the customer, staff and HSE etc are all adapted to fit with the current circumstances.

“However, I do believe that the effects may also provide opportunity and need not be negative.

“I would imagine that the domestic travel market will be very strong for 18 months or so, but also, as restrictions on foreign visitor are gently eased, then the international market will see positive growth for a number of years.

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“This will be dependent largely on the messages given out both by central government and regional councils and their supporting tourism bodies.”

The Hog's Head Inn, Alnwick.The Hog's Head Inn, Alnwick.
The Hog's Head Inn, Alnwick.

The company operates five pubs with rooms in Northumberland – The Hog’s Head Inn at Alnwick; Lindisfarne Inn at Beal, The Amble Inn at Amble, The Bamburgh Castle Inn at Seahouses and The Commissioner’s Quay in Blyth.

It also has premises in County Durham, Yorkshire and the Lake District and is building a new 40-bedroom inn at Seaburn, near Sunderland.

Changes it has made include perspex screens at check-in/check-out, contactless payments wherever possible and full sanitisation of any areas and equipment after every single use.

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There will also be social distancing markers placed throughout inns, as well as hand sanitisers throughout and one way systems wherever possible

Bamburgh Castle Inn, SeahousesBamburgh Castle Inn, Seahouses
Bamburgh Castle Inn, Seahouses

Food and drink will only be available for purchas from a table (no bar service) and it is requesting guests to stay at their table as much as possible

No menus, cutlery or condiments will be on tables. Tables will be set once guests sit down. Mew, disposable menus will be introduced too.

There will also be additional cleaning of rooms, especially touch points such as door handles and television remote controls.

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All team members will be wearing appropriate PPE for their roles at all times.

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