Shepherd Neame chief executive Jonathan Neame to 'keep pressure on' lifting of restrictions for June 21 despite Indian variant fears

Pub chain boss Jonathan Neame says he will continue to push for social distancing measures to be scrapped next month - despite concerns over the Indian variant of Covid-19.

The chief executive of Faversham-based Shepherd Neame says 95% of its outlets will be trading again from today but says reduced capacities make it difficult to deliver profitable trading.

For the six months ending December 26, 2020, the Faversham-based firm reported a statutory loss of £7.2million before tax. A year earlier, the same period had generated a profit of £5.4m.

But he welcomed today's reopening of indoor spaces and said the nation is on the right path.

He said: "It's a really important step. It is of course some way off what a normal pub will be. Many rely on bar service and music - and we're not there yet.

"We just hope we'll get there on June 21.

"Shepherd Neame is unusual in that two-thirds of our pubs have gardens so could open last month, but across the sector, only about 40% of all hospitality has been open and, of course, hospitality is a very broad church - covering music venues and nightclubs which haven't opened at all since March last year so we're a long way from normality, albeit this is a very important step today.

Finally customers can enjoy a drink inside a pub today as restrictions are eased
Finally customers can enjoy a drink inside a pub today as restrictions are eased

"There is concern about this Indian variant.

"The sector will really be saved when we have no social distancing - last week we hoped that would be on June 21 and that date has been thrown into some doubt now. But we need to keep pushing for the full lifting of restrictions.

"Social distancing restricts capacity and therefore restricts your ability to trade in a normal way.

"Last month we traded above expectation, despite the inclement weather. If we continue on the roadmap as we hope we will, we believe we'll see a great British summer.

"We hope people stay in their local area and support their local pub and restaurant."

Customers braving the cold last month at the Rose in June, Margate
Customers braving the cold last month at the Rose in June, Margate

Given social distancing, the majority of Shepherd Neame pubs will now be operating at 70-80% capacity which, says Mr Neame, is "great as it's more than it has been, but it's still not 100%".

He explains: "It's relatively low-margins, so you need to be operating close to capacity and with a high degree of consumer confidence. If we get those circumstances this summer, and that is possible, then that is the road to recovery."

In a message to his team published this morning, he added: "We are edging closer to the start of a Great British summer, and, we hope, eventually to VC Day - Victory over COVID! Personally I cannot wait."

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