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Pub and restaurant shares higher as UK on track to ease restrictions

Published 05/07/2021, 10:53
Updated 05/07/2021, 11:01
© Reuters

By Samuel Indyk

Investing.com – Shares in UK pub and restaurant names were trading higher on Monday ahead of a press conference from Prime Minister Johnson, where he is set to confirm that the country is on track to remove more Covid restrictions on 19th July. At the same time, the new UK Health Secretary, Sajid Javid, will be updating members of parliament on the plans.

At the press conference, the PM is expected to say that hospitality venues such as bars, pubs and restaurants will not need customers to scan a QR code upon entry. The QR codes are linked to the NHS application and assist with tracking and tracing those in direct contact with someone who may have tested positive for the coronavirus.

Johnson may also make wearing face masks voluntary, meaning you will not be forced to wear one when entering hospitality venues or walking around, as is currently the case.

Other restrictions currently in force are the “rule of six” in venues, and table service in pubs and restaurants. There has been no confirmation on whether these rules will be relaxed on July 19th but as the link between Covid cases and deaths has weakened due to the vaccine programme, it is expected that Johnson will be happy to end these rules.

Pub and restaurant groups set to benefit from the easing of laws and listed in the FTSE 350 include J D Wetherspoon (LON:JDW), Marston’s (LON:MARS), Mitchells & Butlers (LON:MAB), Restaurant Group (LON:RTN), and SSP (LON:SSPG).

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Another supportive element for pubs and bars is England’s progression in the European Championship. A victory over Ukraine on Saturday means the national team now face a semi-final against Denmark on Wednesday before a potential final against Spain or Italy at Wembley Stadium on Sunday.

The pubs and bars will be hoping England can progress so they remain full for the remainder of the tournament.

Johnson is scheduled to hold his press conference at 17:00BST.

Latest comments

but..but... it's still not safe...my cousin's neighbour has a slight sniffle..
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