‘Tube strikes this week will cost us tens of thousands’: Frustrated businesses warn of huge hit to London economy
On a sunny Wednesday lunchtime, the City of London is usually packed with crowds of workers looking for a quick business lunch. But most of the city’s traders remain open with empty seats and no queues as their usual customers work from home.
“It’s dropped significantly,” says the manager of MuMu Street Food, an Asian restaurant near Moorgate. “We [usually] “There is a queue, we work non-stop, but now I have nothing to do but sit and wait for customers.”
With just two days to go before the Railways, Maritime and Transport (RMT) union’s metro strikes this week, traders are already feeling the blow as the hospitality industry prepares for a “devastating impact”.
Members went out for 24 hours starting at noon on Tuesday and will do so again on Thursday, which will affect city workers’ commutes. Those who reached the office faced longer-than-usual journeys to the capital by crowded bus, taxi or bicycle.
On a normal day, the MuMu team served approximately 200 customers; They noticed a 50 percent drop since the strikes. However, this not only affects the number of customers, but also employees find it difficult to get in.
“This isn’t just about the customers, it’s also about us,” said the manager, who asked not to be named, but said their usual 55-minute route to the restaurant had been extended to an hour and 45 minutes each day.
Sandwich shops in Birley have also seen a decrease in footfall since the strikes began.
Paul Salter, managing director of Birley’s, said: “Our stores in the city and in Canary Wharf have been hit by between 15 per cent and 20 per cent fewer footfall and resulting sales. “This unnecessary strike action is yet another huge blow for a chain of our size.
“It’s going to cost us tens of thousands of pounds this week. It’s very frustrating and is another blow to the hospitality industry, particularly the retail industry,” he added. “We can only hope that they solve this problem before the attacks planned for next month.”
Mesi, owner of Mesi’s Caffe, which serves Italian food near Finsbury Circus, estimated a 30 per cent drop in customs: “We’ve got a lot of regular customers… I think they’re working from home.”
Restaurant suppliers are also feeling the pain as restaurants cancel orders and cancel reservations.
George Edwards, managing director of the London Wagyu Company, which supplies 60 luxury restaurants and 20 butchers across the country, said: Independent It was stated that the company’s volume this week decreased by 18 percent compared to last week.
Further strikes are planned for May and June after the RMT accused Transport for London (TfL) of trying to introduce a new four-day working week, with general secretary Eddie Dempsey expressing disappointment that negotiations had stalled.
Hospitality industry experts say it is too early to see the exact impact on businesses, but analysis of the impact of 31 days of metro attacks in 2023/2024 showed a 32 per cent drop in average hospitality industry sales in Zone 1.
There was 34 percent less tradition in coffee and sandwich shops, 38 percent less in pub and bar sales, and 29 percent less in restaurants.
Kate Nicholls, Head of UKHospitality, said: “Tube strikes are having a devastating impact on London’s hospitality businesses, with sales falling by up to 40 per cent on strike days. Commuting visitors are virtually non-existent and families are canceling plans to visit the capital.”
“As we saw with the strikes that hit the industry a few years ago, the cost of strikes can run into the millions. It is not just the loss of sales but also the impact on hospitality staff who are no longer able to get work.
“I call on all parties to continue negotiations and reach a solution that will prevent these damaging attacks.”
Night Time Industries Association chief executive Michael Kill warned that the new wave of strike action would create even more uncertainty for businesses in the capital.
“As the sector faces a new rise in energy and operating costs, this new wave of strikes is creating more uncertainty that businesses cannot afford. Margins are being squeezed across the board and confidence is becoming increasingly fragile.
“The ongoing disruption of transport services begs the question: Who is this actually benefiting? Because right now, it is businesses, workers and the wider public who are paying the price for the reckless actions of a few,” he added. “Without reliable transport late at night, staff struggle to get to work, customers stay away and businesses lose critical trade. “Many venues are already under intense financial pressure, with ongoing disruption only increasing the risk further.
“We respect the right to strike, but this situation cannot continue. All parties need to sit down and find a solution, because continued uncertainty in such a period will have serious and lasting consequences for London’s night-time economy.”
RMT has been approached for comment.
