Plan B restrictions were officially lifted today, with the hospitality sector, in particular London city pubs, the likely beneficiaries.
The rules requiring mask wearing for in-door venues, working from home unless essential and vaccine passports to enter large venues and events are no longer in place.
Hospitality venues such as pubs and restaurants bore the brunt of the new clampdown, which was inspired by the spread of the omicron variant, as Christmas parties and celebrations were cancelled.
London pubs were hit hardest by the restrictions, as office parties were cancelled and workers stayed at home rather than commuting into the city.
The return of employees into the city is likely to lead to boost in business for pubs, with Clive Watson, chairman of City Group Pub telling the Evening Standard last week that office workers being back behind the desk is “is absolutely vital for hospitality.” “
Brick and mortar retail stores were another that took a whack over Christmas, with footfall in London during December nosediving 31.2% compared to pre-pandemic levels according to figures from the British Retail Consortium.
The entertainment sector, mainly cinemas, may receive a mini boost thanks to the easing of restrictions, although December performance was relatively positive.
Cineworld Group PLC (LSE:CINE) were seemingly unaffected by restrictions in the UK, with revenues rising 89% in the UK and Ireland thanks to popular releases such as Spider-Man: No Way Home, as well looking forward to big releases this year, such as Top Gun: Maverick and Black Panther: Wakanda Forever.
Increased footfall is clearly crucial, but other challenges remain, notably staff shortages and rising costs.
Russ Mould, investment director at AJ Bell, said the temptation for hospitality and entertainment sectors to increase prices to offset inflation and higher input costs might be hard to resist.
“It will be interesting to see if hospitality and entertainment feel the need and are able to put through price increases and make them stick, or whether consumers push back by staying away and eating and drinking and watching video streams at home,” Mould said.
JD Wetherspoon Plc (LSE:JDW) shares were down slightly in early afternoon trading, changing hands at 888p, with Whitbread PLC (LSE:WTB) also down 1.13% to 2945p.
Cineworld shares were trading at 39p, down 0.57%.
Marston's PLC (LSE:MARS) however were trading 0.37% higher at 88p.