The British Coffee Association (BCA), and more than 20 organisations from across the ‘farm-to-fork’ supply chain have predicted that food and drink suppliers to the hospitality and food service sector are at risk of being overlooked as the UK Government considers how to re-open the industry.
The findings published in the latest report revealed that those businesses in the ‘squeezed middle’ had not been given the same level of government support as the businesses they supply, despite being as hard hit by the overnight lockdown.
The report said that the level of support available to the ‘squeezed middle’ is currently poorly focused and will not deliver the recovery plan the UK Government is working on.
The report titled Maintaining Post-COVID-19 Capacity in Hospitality and Food Service Supply Chain Businesses – ‘The Squeezed Middle’ has been presented by the Food and Drink Federation-convened Food and Drink Industry Roundtable, with input from the BCA.
According to Paul Rooke, executive director of the BCA, their primary goal has been to ensure businesses that supply the foodservice and hospitality sectors and who are fundamentally viable get the support they need to be ready to provide their customers when they restart their operations.
In addition to publishing the conclusions from the new report, the BCA has co-signed a letter to Rt Hon George Eustice MP, secretary of state for Environment, Food and Rural Affairs, to advocate for the new report’s conclusions to be considered by the government.
Maintaining business liquidity reportedly remains a considerable concern for the ‘squeezed middle’- report. The research undertaken for the report showed that less than half of food and drink manufacturers have applied for Coronavirus Business Interruption Loan Scheme (CBILS) or Bounce Back Loan Scheme (BBLS) support.
Concerns over incurring additional debt and associated interest payments were quoted as the main reason. At the same time, many companies face up to 50% of their customer base delaying payment or not paying outstanding invoices.
