Financial impact of TFL strikes on London’s hospitality sector

This week’s five-day TfL strike action has had a substantial and immediate negative financial impact on hospitality revenues across London.

Our analysis, which consolidates data from over 100 operators, reveals a severe decline in sales, particularly at the beginning of the week when compared against the 52-week average:-

• Monday: Revenue drop of −48.62%
• Tuesday: Revenue drop of −42.20%
• Wednesday: Revenue drop of −38.77%
• Thursday: Revenue drop of −18.06%

Access Hospitality states bookings for restaurants and other hospitality venues in London have fallen by 67%, and trade body UK Hospitality estimates this week’s walkouts could cost the sector up to £110 million.

The data highlights that the disruption was most severe on Monday (the first day of the strike) and Tuesday, gradually easing as the week progressed.

To mitigate losses, many operators were forced to reduce hours or cancel shifts for casual and zero-hour employees, leading to a significant loss of income for many employees, in addition to loss of service charge income which is a key component of take home pay.  

Whilst some restaurants in Soho, Knightsbridge, Notting Hill and those in close proximity to the Elizabeth Line (which was not affected by the strike) reported minimal impact, the data demonstrates the overall sensitivity of the restaurant sector to transport disruptions and underlines the importance of contingency planning around major events that affect customer mobility.

Although the strike action concluded on Friday morning, its impact is set to linger into the weekend. Projections based on confirmed bookings indicate that weekend sales are still tracking below average. 

Our industry tracker consolidates data from over 100 hospitality operators across London and the surrounding areas, including quick service, casual dining, Michelin-starred, pubs, bars, and clubs.