Bars, restaurants may never fully recover from pandemic, Molson Coors CEO says
Your favorite bar may also offer fewer tap options
The coronavirus pandemic may have changed the bar scene for good, one industry insider predicted this week.
Gavin Hattersley, the CEO of Molson Coors Beverage Co., questioned whether the bar and restaurant industry will ever see a full recovery following the coronavirus pandemic.
“There’s absolutely no doubt in my mind that it’s going to take a very long time to recover to 100% of bars and restaurants that were open before the pandemic,” Hattersley said during a virtual conference hosted by Morgan Stanley on Tuesday. “I think that’s a long-haul if it ever – if we ever get back to that place.”
The hospitality industry has been one of the hardest hit by restrictions put in place to stem the spread of the virus – with operations largely limited in the U.S. and many parts of the world for the vast majority of this year.
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In the U.S., as confirmed cases spike, many state and local officials are ramping up restrictions once again to try to flatten the curve.
“We’ve gotten really good at operating in a pandemic,” Hattersley said, while adding that a prolonged shutdown, however, is obviously not good for the business.
Around 17% of the company’s North American revenues are derived from on premise activity, which has been constrained at differing levels since the pandemic broke out in early 2020. In Europe and the U.K., however, a much higher percentage of net service revenue comes from on premise activity – as much as 65%, Hattersley said.
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Another change consumers may notice as they begin to eventually return to their favorite local bar? Fewer tap options.
Hattersley said that during the pandemic consumers have migrated back toward big, known brands, which is a trend that he predicts “will be sticking,” meaning bars will likely have fewer beer options available.