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Coronavirus wrecks UK leisure time

Our fun has been consigned to our homes, to the detriment of many business
Coronavirus wrecks UK leisure time

Coronavirus has put a stop to the UK’s downtime, grounding flights, closing pubs and cancelling restaurant dinner dates. 

The aviation industry has been the focus of intense speculation surrounding a potential bailout. Chancellor of the Exchequer Rishi Sunak appears to have ruled out an industry-wide rescue package. The Anglo-German Tui (TUI) has, however, received a €1.8bn (£1.6bn) loan from the German government, which may be indicative of possible funding offered to the likes of easyJet (EZJ) and British Airways parent International Consolidated Airlines (IAG), should they desire it.

Any waistline inflation caused by the closure of gyms will hopefully be tempered by our inability to eat out, although this writer has yet to maintain such equilibrium. As we transfer the burning of calories from public spaces and into our homes, our food consumption has shifted out of restaurants and into takeout, to the benefit of Domino’s Pizza (DOM), whose recent surge in online deliveries has offset the decline in collections. Food sales have also moved across to supermarkets, potentially spelling trouble for the likes of Wagamama-owner Restaurant Group (RTN), who may fear an entrenchment of home eating behaviour. We don’t doubt a flurry of restaurant activity once social restrictions are lifted, assuming these businesses are still standing, and there may be value opportunities in this sector once we have a clearer timeline for the resumption of trade – assuming their debt burdens don’t overwhelm them.

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