The London business center is more affected by this phenomenon than the rest of the city. Restaurants located in residential areas, in particular, suffer less.
The City of London, the financial heart of the United Kingdom and central district of the British capital, has lost 14% of its restaurants and bars since the pandemic, showing the impact of teleworking on the economy of business areas. A study by CGA and AlixParners finds that one in seven restaurant or pub operating licenses have disappeared in the City since March 2020, more than the city average (10.5%), and more than in the neighborhoods residential where these closures sometimes only reach 5%.
In these areas, people who previously “commuted to central London daily started working from home during the 2020 and 2021 lockdowns, moving to a new hybrid working system and increasingly using their local pubs and restaurants“, notes the study, published Monday.
In residential areas of London, it is not uncommon to see workers with several computers and a headset set up for hours, alternating coffees and teleconferences. The study notes that the closures of establishments are also more important in the City than in the business districts of other large British cities, such as Manchester or Edinburgh.
‘Hit harder’ than other business centers
Karl Chessell, one of CGA’s Hospitality Sector Managers, points out that “the City’s hospitality market has been hit harder than business centers in other major cities by Covid-19, with lockdowns and restrictions limiting travel and tourism“.
Especially since “changes in work patterns are going to be permanent for many people“, he adds, emphasizing, however, that conversely, “other parts of London have proven more resilient“. According to a recent study by Advanced Workplace Associates (AWA), the average presence in the office worldwide is now 26% of the workforce, with peaks in the middle of the week.
SEE ALSO – Covid-19: What telework has changed