Lockdown sees British pubs face biggest ever challenge to survive

The novel coronavirus is a "real test" for Britain's pubs, according to a trade body that is pressing the government for more support aimed at helping the sector survive the lockdown.

"This is a crisis for the industry that they have not seen before," said Emma McClarkin, chief executive officer of the British Beer and Pub Association. "We have seen the pub industry survive two world wars, and a global economic downturn, but whether they will survive coronavirus, that is a real test, because this is the first time they have been closed completely, with zero trade."

In a move to slow the spread of the novel coronavirus, Prime Minister Boris Johnson ordered pubs across the United Kingdom to close on March 20. Since then, most have stayed shut, with only a few managing to offer takeaway services and home delivery.

Now, more than six weeks after the start of the lockdown, landlords are dealing with the additional financial pressure caused by spoilt beer.

According to the Campaign for Real Ale, 50 million pints of beer could be poured down the drain because of the lockdown.

"Closing a pub is one thing and shutting the door, but reopening it is something else," McClarkin said. "Many of our cellars were full of beer that is now unsalable or may go out of date during the period of closure. We have a whole operational problem now of getting those kegs out and getting them back to the brewer and getting the brewer going again, filling them up and restocking our pubs. It's quite a long process."

And, with reduced demand, many British brewers have switched production to the manufacture of hand sanitizer.

The British beer and pub sector is world renowned, and visiting a pub to enjoy a pint of beer is reportedly one of the top three things tourists want to do when visiting the UK. To locals, the pub is seen as a place where people can socialize.

The British government has stepped in to help pub owners by reimbursing 80 percent of the salaries of furloughed staff, up to a maximum of 2,500 pounds ($3,105) a month per person. Publicans are also able to apply to apply for either a 10,000-pound or 25,000-pound cash grant. But McClarkin says, because of the nature of the business, more support is needed.

She said social distancing restrictions that will likely be in place after the lockdown is eased will make it extremely difficult for pubs to reopen. Many, she said, will likely remain closed for far longer than most other businesses.

"We are expecting to receive 50 percent of the trade when we reopen," she said. "So, it won't be as much money coming in to sustain our business and to pay our staff. We are calling for extra support from the government, particularly for our large pubs that have received no cash support at all from the government at this stage."

The government plans to reveal its lockdown exit strategy this week.

McClarkin is predicting restrictions on pubs could be lifted between June and the end of the year.