50 minute read
BACK TO WORK
to work back
The last several months have seen unprecedented upheaval in all walks of commercial life. But as they say, the show must go on and many Cornish businesses have been displaying remarkable resilience in the face of adversity
Six months ago, most of us were still going out to a place of work. We perhaps visited the gym before work, popped out to buy a takeaway lunch and stopped at the shops on the way home, all without a second thought as to whether that was a healthy or socially acceptable thing to do.
We happily moved in crowds, got together in low-ceilinged rooms for business events and greeted old and new acquaintances with a customary handshake. Nationwide, according to the Office for National Statistics, only 1.7 million UK workers considered their home as their main place of work prior to the coronavirus pandemic. By the end of March 2020, an estimated 20 million relocated to home offices. Many of us are finding it hard to imagine that the working day will completely return to pre-March normality anytime soon.
On July 16, the Prime
Minister encouraged people to return to work in August, if they can.
A month later and businesses continue to emerge from lockdown. The latest statistics from the Government’s Business Impact of Covid-19 Survey (BICS) (Wave 10 of the fortnightly survey, at time of writing) showed that just under 94% of businesses nationally were currently trading (as opposed to being temporarily closed or paused trading, or ceased trading) compared to under 77% in April (Wave 3).
These figures are amplified significantly in the accommodation and food service sector, a sector so dependent on seasonal tourism, where most (83%) have now reopened compared to less than 1 in 5 (18%) being open in April.
A survey of over 2,000 employed adults conducted on behalf of Aviva at the very end of June showed a half (49%) of workers were feeling positive about a return to work, with 61% of those returning to work believing their employer will put the right safety measures in place. Unfortunately, 35% of those who do not believe their employer will do enough to make their work environment safe said they won’t be returning.
Back in March, when the Government asked the country’s workforce to work from home if they could, employers were compelled to discover their organisations’ resilience by implementing remote working and business continuity measures, which were largely untested in most cases. In Aviva’s nationwide survey, 42% of employed adults spent lockdown working from home, 26% continued to work in their usual place of business, 21% were furloughed and 6% continued to work in different locations in a key trade (eg, plumber, electrician, et.). A further 5% were not working and not on furlough.
In Cornwall, PFA Research’s What Cornwall Thinks panel July survey shows that 37% of working adults are now going out to work compared to just 16%in April. Those working from home remains high at 48% from 54% in April but was just 26% before lockdown, whilst the proportion of respondents furloughed has dropped to 10% from 23% in April.
Just under one third of those working from home say they would normally be working from home and for the vast majority (90%) of all the current home workers, they say this situation suits them. There has been a slight increase since April in both the proportion of those working from home and those that state working from home suits them.
PFA Research undertakes the Quarterly Economic Survey on behalf of the Cornwall Chamber of Commerce (www.cornwallchamber.co.uk/qes). The Q2 survey in May asked respondents to think about the future (post-coronavirus) and whether they anticipate any significant changes to working practices. Almost four in five (78%) businesses expected to be making important adjustments, with over a third (34%) introducing or increasing remote working, 16% making changes to regular working procedures and 13% each planning to reduce travel for meetings, making more use of technology and permanent implementation of Covid-secure environments.
Thinking about the future (post-coronavirus), do you anticipate any significant changes to your working practices? If yes, what you will be doing differently?
FINDING NEW NORMALS
Remote working Change of working procedures Less travel/meetings Increase use of Technology Implement Covid-19 guidelines/PPE Loss of buisness Flexible working Create/expand online business Continuous assessing of risk Decrease premises Potentially cease trading Fewer staff 16%
13% 13% 13% 10% 9% 8% 7% 6% 6% 5% 34%
A June survey from the International SOS Source: Cornwall Chamber QES, 2020 Q2. Survey of 175 businesses. Foundation, an independent, not-for-profit Base: Chart shows the 78% of businesses that expect to make significant changes to their working practices. organisation concerned with duty of care for the global workforce, reported that over 70% of companies’ primary business continuity concern is further disruption from a potential second wave of the Covid-19 pandemic. While there is a current focus on return to work measures, over a fifth (21%) of respondents still didn’t have a pandemic plan and process in place. PFA Research moved back into its offices at Tremough Innovation Centre; a thoroughly risk assessed decision with a mitigation of revised policies, hand sanitisers, anti-virus equipment wipes, and transparent screens between researcher workstations to help staff to keep safe and feel confident. No one is being forced to work from the office and all have the option to return to home-working if they wish. entirely comfortable returning to the office but almost half (48%) admitted to having some concerns about Covid-related risks. Many businesses are therefore still in the curious hybrid state of prolonged ‘business continuity’ and ‘return to work’. Reaching ‘business as usual’ may be a long haul destination for many and further where business as usual becomes redefined by new smart working strategies. PFA Research undertakes the Quarterly Economic Survey on behalf of the Cornwall Chamber of Commerce (www. cornwallchamber.co.uk/ qes). The Q2 survey in May asked respondents to think about the future (post-coronavirus) and decided their business can work well as a distributed or home-based arrangement. A report by Flexioffices, which surveyed 391 decision-makers and influencers of office space, considered the impact of Covid-19 on premises lets, concluding the growing importance of flexible contracts as businesses look to reduce their floor space and rent in the short term and then search for more flexibility in the future. 43% of respondents said they will need flexible contracts in the future with 22% of respondents already in a flexible contract. When thinking about future needs, 21% said the floor space will be the most important consideration, 19% said price and 19% location. A greater proportion of premises have access Cornwall ought to be well-placed The Q2 survey of Cornish businesses suggests that many will evaluate their use of space and premises and how such changes may be offset by more use of remote working and technology. Some smaller Cornish businesses have already made the financial or tactical decision to give up their office premises, having decided their business can work well as a distributed or home-based arrangement. A report by Flexioffices, which surveyed 391 decision-makers and influencers of office space, considered the impact of Covid-19 on premises lets, concluding the growing importance of flexible contracts as businesses look to reduce their floor space and rent in the short term and then search for more flexibility in the future. 43% of respondents said they will need flexible contracts in the future with 22% of respondents already in a flexible contract. When thinking about future needs, 21% said the floor space will be the most important consideration, 19% said price and 19% location. A greater proportion of premises have access to full-fibre broadband in Cornwall than any other place in the UK. As business models become more digital, as expected by 61% of the 699 global CEOs surveyed by PwC, businesses in Cornwall ought to be well-placed to provide the connected and lifestyle environments needed to make remote teams and smart working a success.
A recent survey by outsourced communications provider, Moneypenny, into the return to work post-Covid lockdown, shows that 45% of the 1,000 office workers interviewed were returning to work immediately, with a further 31% due back in the next one to four months. However, around 5% said their employers have stated they won’t return to work until January whether they anticipate any significant changes to working practices. Almost four in five (78%) businesses expected to be making important adjustments, with over a third (34%) introducing or increasing remote working, 16% making changes to regular working procedures and 13% each planning to reduce travel for meetings, making more use of technology and permanent implementation of Covid-secure environments. The Q2 survey of Cornish businesses to provide the connected and lifestyle environments needed to make remote teams and smart working a success to full-fibre broadband in Cornwall than any other place in the UK. As business models become more digital, as expected by 61% of the 699 global CEOs surveyed by PwC, businesses in Cornwall ought to be wellplaced to provide the connected and lifestyle environments needed to make remote teams and smart working a success. PFA Research will be undertaking the Q3 wave of the Quarterly Economic Survey for the Cornwall Chamber in September and will continue to track opinions of Cornish residents through the What Cornwall Thinks community panel www.whatcornwallthinks.com 2021 at the earliest, suggests that many will evaluate their use of with almost 18% space and premises and how such changes having not been may be offset by more use of remote working given a date to and technology. return as of yet. Some smaller Cornish businesses have A third (34%) said they were already made the financial or tactical decision to give up their office premises, having MAIN ARTICLE CONTINUED ON PAGE 18
A NEW DAWN
CORNWALL CHAMBER CEO, KIM CONCHIE, SAYS NOW IS THE TIME FOR 21ST CENTURY INDUSTRIES TO COME TO THE FORE
I ran my business through the 1987 Black Monday crash, the ’91 recession, the dotcom bubble bursting, 9/11, the 2007 world collapse… but this crisis is more seminal a moment in business life than any of those.
It has accelerated - and I hope will be a catalyst for - change from ways we already knew weren’t working. The overuse of fossil fuels, single use plastic, factory farming, cheap labour, unnecessary business travel to name but a few, had been questioned for years but survived those previous bumps. The tech to allow home working has been around for years – but not implemented for all sorts of reasons. Until now.
My own experiences of lockdown are irrelevant. As CEO of Cornwall Chamber of Commerce, we’re here to champion,
represent and support all sectors of provenance, traceability, business across Cornwall. 92% of Cornwall’s craft, individuality, businesses have been adversely affected by premium products & Covid. So our team, all working seamlessly attentive services than from home of course, have had innumerable the mass-produced, conversations with bemused, angry, homogeneous output of distraught business owners and the past. their employees worried about furlough, redundancy, short hours, zero hours; and with British Chambers HQ, Cornwall Council, the LEP, MPs, Cabinet Office, Treasury, with media and other places of business in the world. We’ve run online events, continued to issue export documents (encouragingly back to pre-Covid levels last week) 1-1 advice and mass media info and encouragement. For the short-term, times are If we look at just one area in which Cornwall is developing expertise – renewable energy – we have tremendous potential If we look at just one area in which Cornwall is developing expertise – renewable energy – we have tremendous potential. 60% of the UK’s geothermal capacity is under our feet; we have the most hours of sunshine; we have the best access to prevailing winds; and we have the longest going to be tough. I fear the coastline of any county Government measures in soin England; so we can be called Covid Stage 2 are not home to natural heat, solar, going to be enough to avoid redundancies and wind, offshore wind, tidal and wave energy. business closures in several sectors. The cost to human health and the economy would be far worse than if the Treasury announced more expansive measures now to minimise these. These industries alone are going to need scientists and engineers, diggers and landscapers, marketers and accountants, carers and caterers, divers and drivers to But longer term, I think there will be name but a few. opportunities for Cornwall. Clearly businesses in digital delivery, food & drink delivery and specialising in home working services have prospered already, But wider than this the crisis has made remote working totally acceptable and this will attract knowledge workers to establish and run their businesses from here and mean Cornish residents will more readily be able to stay here to work and bring their earnings to the county. Put renewables alongside e-health, marine, agri-tech, sustainable tourism, space & data and you will begin to see 21st Century industries that will enable us to regain our mojo and possibly provide the next golden era for Cornwall. We have two of the best FE colleges, four universities and paid-for programmes like Employer-Led Skills to help people adapt their skillset, retrain or pivot their business for a brighter future in Cornwall. If Both Cornwall’s public vision and personal we can get through the next 100 days, we psyche are better served by today’s interest in can lead for the next 100 years.
CORNWALL CONQUERING COVID As the lockdown gates were opened and people flooded back into Cornwall during August, there were tangible signs of relief for the Cornish tourism industry, writes Bishop Fleming audit partner, Alison Oliver. The streets were heaving with visitors escaping from lockdown, and with diners looking to take advantage of the Eat Out to Help Out scheme.
Restaurants, bars, and cafes were busy adding vibrancy to Cornish towns and resorts. Many with Government help, survived the Covid-19 crisis, but now must survive the recovery.
Owners of hotels and other holiday accom modation reported sharp rises in bookings as people see staycation a safer option that travelling abroad during a pandemic.
The Government has provided unprecedented levels of support to businesses this year through tax and VAT deferrals, and through the payment of loans and grants.
The furlough scheme has been a key support measure, creating an unparalleled number of enquiries from clients. With its numerous
MANUFACTURING
The importance of the manufacturing sector can sometimes be overlooked but has a key role to play in the recovery of the economy.
And it has been a rollercoaster ride for
Cornwall’s manufacturers, very much reflecting the national picture.
Jon Hurrell, CEO of the Cornwall
Manufacturers Group (CMG), says:
“Since the pandemic reached UK shores in March the manufacturing sector has seen mixed levels of impact on its stability and our members have been dealing with a variety of challenges.
rule changes, the scheme has not been straightforward to administer, but despite this it has successfully allowed employers to cover their wage costs and retain staff.
Not everyone has been helped, for example company directors paid in dividends rather than salary, or the newly self-employed. And whilst there have been many business casualties from the lockdown, other firms have managed to keep going and, in some cases, improvise and create new product lines or create new online presences to attract new customers.
The reopening of the Cornish economy highlights the critical challenges of supply chains, debt, availability of raw materials, and of course finance. Cash continues to be king, and liquidity will be a decisive factor in conquering Covid-19’s impact.
The temporary VAT cuts for the hospitality sector help create an impetus for the public to consume, so the tills are ringing in many places regardless of the administrative issues of dealing with differing VAT rates.
Further ongoing help from the government is the current ban on evictions of commercial
“Although all of our members are back up and running after lockdown, 60% of them have seen a significant reduction in orders and unfortunately more than 30% are having to make the difficult decision to reduce the number of people they employ.
“However, in contrast, some CMG members have seen stable and, in some cases, increased sales and are currently recruiting as a result. We are also starting to see an increase in orders across the group but perhaps not as quickly as we would like and many of the members think it will be more than 12 months before they fully recover.”
During Sir Keir Starmer’s recent visit to Cornwall, the Labour leader highlighted that the Government needed to do more to protect the important sectors of tourism and manufacturing in the county.
CMG chair, Eric Nicholls, adds: “The value of UK manufacturing has not always been recognised but these recent
tenants, backed by a code of conduct to help both tenants and landlords negotiate a way forward. This will be crucial for the future of the high street.
All the spending by the Chancellor so far totals around £200 billion, which is a staggering amount, and we wait to see what he will do in the Autumn Budget. Will he start collecting some of this back, or offer new forms of support? We shall see.
months has showcased the invaluable impact the sector has on the economy. We never expected the words
During the height reshoring and buying of the first wave British being of the pandemic voiced across multiple several of our platforms members have and to see manufacturing also worked hard being to help the NHS praised for its commitment and the local to the UK care provision by manufacturing face shields, masks, is truly encouraging. “I might add, that during the gowns and hand height of the sanitiser first wave of the pandemic several of our members have also worked hard to help the NHS and the local care provision by manufacturing face shields, masks, gowns and hand sanitiser – outside of their usual field of manufacturer. This is something which they will be ready to do again if required.”
SHIP SHAPE
Pendennis Shipyard closed for a short time at the end of March during which time the company put in all possible measures to minimise the risk to staff, contractors and yacht crew.
It’s now operating with more than 90% of its total workforce on site, with office staff working from home where possible.
“It’s our in-house permanent team that have enabled us to keep working,” says joint MD, Mike Carr. “We always attribute much of our success to our people but in times like these it becomes even more apparent just how important they are.
“We have implemented numerous extra measures at our facility for everyone accessing and working at our site. We have introduced return inductions, daily temperature checks, one-way systems, two metre distancing
markings, extra hand-washing stations and an enhanced cleaning schedule amongst many other initiatives. We are listening to our people to make sure that they feel safe, our general risk assessment and Covid Secure declaration is available on our website and we are updating internal guidance We’re currently working with new documents as the government guidelines change.” shift patterns Like many which enable us businesses to ensure safe during lockdown, Pendennis has social distancing, taken time to reflect whilst increasing production levels and review working practices. Mike says: “We’re currently working with new shift patterns which enable us to ensure safe social distancing, whilst increasing production levels.
Our four day on, four day off shifts have
allowed the shipyard to remain open seven days a week for continuous project progression.
“All of these measures mean that we can continue to work on our refit, restoration and bespoke build projects safely and efficiently.”
The pandemic hasn’t slowed business. During the lockdown period Pendennis supported 24 superyachts in Falmouth, ranging from quick stopovers and short works in its basin, to haul outs for longer term refit projects either in the construction halls or covered on our expanse of hard standing.
Mike adds: “Since then we have seen even more superyachts coming to Cornwall and we have been delighted to welcome so many new and returning yachts to Falmouth, having chosen Pendennis as a safe haven and a reliable, proven refit shipyard for their upcoming works.”
CREATIVE & IT
Some business sectors have clearly fared better than others during the lockdown, with IT support services firmly in this camp.
“During the initial weeks of the Covid-19 pandemic, NCI saw a huge increase in demand for our services,” says Andy Trish, director of Penryn-based NCI Technologies.
“This was due to many of our customers making the transition to remote working. Alongside this we had to adapt overnight to supplying our IT support services as a remote only service, helping to protect the health of our own staff. Our team has risen to the challenge and the situation has offered us the opportunity to develop our remote training, including our new on-demand masterclass resources which are now available online.”
Piran Technologies reports a similar picture. Director Alex Pugh said March, in particular was “exceptionally busy” as businesses rushed to remote working. “I think we had 760 phone calls within two and a half days at one point!” she says.
This initial burst was followed by a slowdown, as the furlough scheme kicked in, but picked up again from June as businesses gradually resumed more normal operations.
And along with many of its customers,
Piran Tech has been reviewing some of the ways it works going forward.
ALEX PUGH, PIRAN TECHNOLOGIES Service design and technology company Made Open also reports it had a busy start to the pandemic. Director Kathryn Woolf says: “Our community platform experienced a surge in demand as our clients responded to the challenges facing their communities. “Clients in Cornwall, Bristol, Devon and Wales utilised our platform to coordinate volunteers and share information, whilst users were able to find support and exchange offers of help. “Throughout the despair,” says Kathryn, “it has been heart-warming to see to the “It seems a good time to embrace change overwhelming kindness from people in all the and we will adopt partial home working in the communities we support online. Thousands future, but I still believe there are benefits to of people stepped up to help others through people coming together regularly, feeling part the crisis. From delivering essential groceries of something larger and sharing knowledge. I and collecting prescriptions for neighbours, don’t believe it’s the end of the office yet!” to organising online fitness sessions and CF Systems also echoes the providing emotional support by phone.” rollercoaster nature of the Covid ride. The technology “Demand for us has been quite volatile,” says sales manager Martin Dinham. “In the early stages of the lockdown, we were exceptionally busy as clients got set up for working from home, with all the infrastructure and security implications that this entails. We then saw a definite period of retrenchment but the last couple of months have seen the majority of our clients reverting to business as usual. sector in general has reportedly been among the more resilient during the crisis. Radix Communications specialises in B2B copywriting for the tech sector and business has been so stable that it hasn’t seen the need to furlough a single member of staff. It seems a good time to embrace change and we will adopt partial home working in the future “Clearly there has been some significant variation across clients depending on their business and industry sector, but overall the impact on us has so far been less than anticipated.” Compared to a lot of companies, we’ve been lucky so far,” admits creative director David McGuire. “The B2B technology sector we work in appears to be relatively well protected. In fact, several of the tech brands we write for have been instrumental in helping people to change the way they work – and they’ve needed our copy to help them explain that.
“As a result, demand has been pretty stable. We haven’t furloughed anyone, or asked for any special funding – instead, our challenges have been around adapting to working from home – supporting people and helping them to feel like a team. We’ve allowed more time for team catchups and quality control, we’ve put new communications in place, and we’re working with Craig Fearn from Business Mental Wellbeing to give easy access to
psychological support where it’s needed.” Many in the creative sectors - graphic design, marketing etc – have probably felt the challenges more acutely than the pure-play tech sector.
Falmouth design company Gendall, for instance, reports having been in a process of constant evolution since February.
“A number of our major clients have been hit hard by the pandemic and this in turn has meant that we have had to re-evaluate and adapt the focus of our business,” says MD Greg Welch.
“We have enjoyed turning our skills in strategy, design and technology to helping growth businesses develop themselves in the county, from business model design, and brand development to digital marketing and e-commerce, the pandemic has enabled us
to identify new opportunities to apply our value creation services.”
Greg says that he has been buoyed by the camaraderie and ‘can-do’ attitude of the Cornish business community and believes there are positives to be drawn.
“There is something special happening in the county at the moment, a movement that is rapidly accelerating creativity, innovation and entrepreneurship, it is fun to be part of and challenging in equal measures, but above all it gives us hope of a brighter future.” during the lockdown temporarily turning their e-commerce functionality off whilst they reorganised processes to cope with the demand and increase in orders.”
Even prior to the pandemic, HookedOnMedia has employed a flexible working policy with team members working from home from time to time. But while the company already had systems in place to work from home, Stewart does not believe this is a full-time solution.
“Remote working has many benefits and is working very well, however the office environment, sparking ideas off each other, and picking up background chatter on projects also has its own unique benefits.”
Lucy Studley is a freelance PR and marketeer specialising in communication for food and drink businesses. She was braced for impact as soon as lockdown started to look like a possibility.
Truro-based digital marketing agency HookedOnMedia says it has been impacted by the pandemic via its clients and their industries. “I was on call 24/7 for clients,” she says, “offering support and comms advice as things went from bad to worse. I spoke to many people in the hospitality industry who were absolutely devastated at having to close their MD Stewart Roode explains: doors just before Easter, “Essentially it has boiled down but everyone recognised to which sector our clients are operating in, those in publicClients with an that it had to be done to save lives.” facing roles ranging from leisure and tourism to health care have felt the worse of the pandemic, having to close venues, moth-ball premises and reduce digital marketing campaigns. existing online channel have often thrived, some experiencing an increase in demand Some clients were able to keep Lucy on during the lockdown to work on specific projects, but she had to fall back on work outside of the hospitality sector and “In these scenarios, we created also the Government’s relief rates to maintain key Self Employment Support areas of SEO presence and traffic ready for Allowance. However, the work is now the come-back whilst also often pausing paid returning, and her business, Cornwall Content ad activity such as Google ads and Social ads is almost back at capacity once again. for the short-term. “There is a mixture of positivity and concern “However clients with an existing online in the industry at the moment,” Lucy says. channel have often thrived, some “People are happy to be back doing what experiencing an increase in demand over and they do best, but there is certainly a lot of above what they can deliver, in extreme cases worry about the future.” THE KING OF NETWORKING Down the years there have been many claimants to the throne, but the current undisputed king of networking must be David Brock, commonly known as Brock.
Since launching the networking group Cornish Partnerships in January 2018, its growth has been meteoric. From what started out with the idea of just a single group in Cornwall meeting once or twice a month, with a 100 members, it has since expanded across the Tamar and beyond, renaming as Your Partnerships in the process, boasting more than 1000 members and almost daily events.
For a group that boasts such a packed diary, you would have thought that lockdown would have had a devastating impact. But far from it. Brock and his Your Partnerships cohorts have been quick to adapt.
“About two months prior to lockdown we had been investigating doing networking online and we actually held our very first online event on March 17 just before the official lockdown with 45 participants on the first event,” he recalls. “We also immediately shifted all networking online the following week, so our shift was immediate.”
Rather than having been a huge obstacle to the group’s growth, Brock believes lockdown has actually helped Your Partnerships.
He says: “Your Partnerships has never been stronger and we have grown at a faster rate than we ever did in face to face meetings.
“We have learned to use new tools and we are engaging with businesses worldwide. We just launched a Your Partnerships Global event in Australia and this is following the already successful events in both South Africa and USA. We have ambassadors that are locally hosting the events and we are finding amazing results.”
Even once the pandemic is beaten and the shackles have released from large gatherings, Brock believes many facets of the new normal will remain.
“Virtual networking is here to stay,” he insists. “Only the future will tell us how much is online and how much is face to face. In Your Partnerships we survey our members to find out what they prefer and do what our members ask for as long as it is safe.”
GLASS HALF FULL
Jo Downs Glass Design makes all of its products in its Launceston studio and retails them through six galleries across Cornwall and another in Surrey. While online sales had been growing steadily year-on-year, it had never focused on the Internet as much as it would have liked…until lockdown struck.
General manager Nick Toulson recalls: “Because we no longer had to focus on any other arms of the business, Jo myself and the despatch team leader were able to focus on fighting for town centre businesses in these as possible. bank holidays and the Internet. We did a 20% off sale and the sales started to increase. Jo was creating new pieces and larger ones to see if they would sell and sell they did. In the first ten weeks of lockdown we had sales increases of +350% year on year.
“We are currently looking at the business as a whole and have realised that in order to grow you sometimes have to reduce which is why we are looking at all our arms of the business and asking those ongoing questions: ‘do we need them, what are
AROUND THE TOWNS months of closure with the loan, whilst also coping with reduced revenue, bringing staff Cornwall’s Business Improvement off furlough and operating in compliance with Districts (BID) have been at the front line, social distancing for the foreseeable future. difficult times. “Those sums just don’t add up,” she says, Camborne BID manager Anna Pascoe for businesses like them, along with beauty, says: “Camborne’s high street traders have massage, tattoo and leisure operators who been adapting and keeping positive insofar remain restricted from earning a living.” “It has been inspiring and over in Newquay, although rewarding to see how quickly they have adapted and started Having to reopen unlike Camborne, many of its businesses rely on the providing online ordering, and implement all tourism trade which since takeaway and delivery services. “Businesses which were eligible for the £10k grant welcomed the speed and ease with which of the Government requirements was a daunting prospect July 4, has experienced a bounce back. Newquay BID manager, Carla Marie Jones, the funding was disbursed and the Coronavirus Job Retention Scheme has provided interim after having been closed for such said: “Lockdown was a challenging time for most of Newquay’s relief to many. Successful, a long time but businesses with many independent SMEs, on the other hand, have there is now a real forced to close and the streets experiencing their been adversely affected air of confidence quietest Easter and start in terms of the help available to them.” and some tell-tale to summer ever. Tyacks Hotel, for example, signs that our town is bouncing back “Since the town reopened in strategically phased stages, it has Camborne’s oldest been fantastic to see business, has Newquay come alive been ineligible again, welcoming for anything visitors, tourists and locals back to the town other than a bounce back to enjoy our diverse business landscape. loan. Anna says it has We’re delighted with how responsible the missed the key cash retailers and businesses have been since flow that Mother’s Day, reopening, ensuring safety measures are in Easter, Trevithick Day, place for all. they preventing us from doing, and what “and BID has been calling for extra support A Similar picture is painted summer festivals “For some businesses, having to reopen usually provides - and implement all of the Government yet is somehow requirements was a daunting prospect after expected to having been closed for such a long time but cover the there is now a real air of confidence and cost of four some tell-tale signs that our town is bouncing will we benefit from if we were no longer have them?’.
“The future is uncertain for any company, especially those in Cornwall and even more so those that rely on tourism as heavily as we do. We have to be lean, we have to ensure that what we are offering is unique and we have to reach those people that are not going to travel here. The future may not be too bright but there is a future and especially one for those companies that are willing to diversify and look at alternatives and opportunities as we have.”
back. Our advantage lies in the fact that we are a tourist destination and people want to come and spend time here. Especially with restrictions and uncertainty around foreign travel at the moment, meaning people will no doubt want to spend more leisure time staycationing here in the UK and Newquay is perfectly set up for this.”
Falmouth is another Cornwall’s towns that benefit from the visitor economy. Its BID came up with a Positive Engagement Plan to help the town get back on its feet, with initiatives ranging from branded hand sanitisers stationed across the town to a hope-filled ‘Falmouth, Spirit of the Sea’ rainbow logo.
It also engaged a series of performance artists to help disseminate important safe distancing, pedestrian flow and street-smart messages in a quirky and imaginative way over the holiday period.
“Of course, there’s a serious message here,” explains Falmouth BID manager Richard Wilcox. “We as a Town Team, have been on the front foot to rollout a wide range of safety measures to support the town, its resident and business communities as part of our Positive Engagement Plan. In fact, the plan has also been utilised and adopted as a template by many other towns and villages in Cornwall and we have also been asked to provide regional leadership to ensure there is a Cornwall-wide collaborative approach to the huge challenge we all face.”
“A huge amount of planning and provision has gone on behind the scenes to make Falmouth safe and welcoming to our local, and further afield visitors, but of course the responsibility lies in all of us. The introduction of performing artists who will adapt their routines to incorporate safety messaging in a fun and imaginative way, is a quirky and original strand on top of the wide range of flexible and responsive support measures already rolled out.”
FULLY BOOKED
Tourism is an absolutely vital part of Cornwall’s economy, accounting for something like 40% of its GDP. For many weeks, it seemed unlikely that there would be a season at all but to the collective relief of the entire industry, these fears were unfounded.
That doesn’t mean to say, of course, that there is any certainty going forward, but for the time being at least, many have just been happy to be back in business.
Those early weeks of lockdown, however, were highly worrying times.
“The first month of lockdown was all about crisis management,” recalls Martin Barlow, owner of the Budock Vean Hotel, “deciding who I needed to continue working to support the business, of which there were eight plus myself, and then furloughing the remaining 74 employees; agreeing terms with all our suppliers so we could continue to pay them over time; communicating with our guests and postponing their bookings; producing a new business plan and getting finance in place etc.
“Once the situation had stabilised, there was then time to plan and to start to think about how we would re-open, without knowing exactly when that might be. I spent a lot of time reading and researching. As industry guidance started to emerge, this helped form a framework for our own Covid-19 risk assessment, which in turn led to our own safe operating procedures.
“These procedures were later organised into a 60-page Covid-19 Employee Handbook/Safe Operating Procedures Manual, covering all aspects of how we would operate the hotel, when we were allowed to re-open. I further distilled this to produce a customer-facing Safe Stay Guide for our guests and members, as well as a series of safe user guides for all our facilities including the golf course, tennis courts, health spa, swimming pool and hot tub, boat and kayaking trips.” The Budock Vean invested in some new technology initiatives such as a remote check in and check out app and Tersano SAO, a ‘structured ozone disinfectant system’. But since restrictions were lifted, just like the Budock Vean, business has been good.
Martin says this time spent and attention to “We weren’t sure what to deal has been vital. expect but demand has been “I believe we have responded to the challenges of re-opening under Covid-19 guidelines very successfully,” he says. “Certainly, in the first four weeks, the direct response from our guests and the on-line reviews have been overwhelmingly positive, with people appreciating the measures we huge and we’ve had a record August,” said Dulce Marques, the hotel’s general manager. “We have been able to take all our bookings direct, rather than via online travel agencies, and rates have been excellent. have implemented. I do believe that we have “Most of our guests are choosing to managed to achieve the difficult balance dine with us, rather than going into between the overriding priority of ensuring Fowey and trying to book a table. The that all our visitors and staff are safe and town is really busy, so it’s easier for them ensuring that the guests experience is still one to eat here. they feel is enjoyable and worthwhile.” “Our September bookings are also very strong, and winter Once lockdown was Our September reservations are going well too. lifted, the Budock Vean was swiftly operating bookings are I think families are desperate to get away after so many months at capacity with Martin also very strong, in lockdown and what better also reporting “very healthy” bookings into the shoulder season and winter reservations are place to choose than a beautifully refurbished hotel in a glorious coastal location.” of September and October. He is optimistic that 2020 revenue could still reach two-thirds going well too The lettings side of the sector has also reported a strong bounce back. of 2019, which all considered, would be a Cornish Gems reports an 108% year-onremarkable achievement. year increase in bookings to date, a 130% “However, uncertainties remain about the winter months,” he cautions, “as some of our business does really on large groups being able to attend Christmas and New Year increase in holiday sales and a 50% yearon-year rise in advance bookings for 2021 – indicating that the demand for staycations in the county is showing no sign in slowing. celebrations. We are developing alternative In the hours following the Government’s plans for these and hope that we can avoid confirmation that domestic tourism any further significant lockdowns local or restrictions were to be eased, traffic to the otherwise.” Cornish Gems website increased by 65%, Fowey Hall Hotel had just completed a multi-million pound refurbishment when lockdown struck. Within just a few days of a page views were up by 92% and momentum continues with new users up, year-on-year, by 168%. grand reopening, it had to close shop again, It’s not only bookings seeing a significant furloughing all but four members of its staff. spike, with the portfolio team recording a vast increase in enquiries from investors looking to expand their property portfolio in Cornwall –nine new luxury properties were added to the Cornish Gems collection during lockdown.
Cornish Gems co-founder, Julianne Shelton, says: “Despite the exceptionally challenging months of lockdown we’re pleased to see the summer weeks now fully booked, and that demand is continuing into the autumn with occupancy rates looking like they will achieve 100% week on week right through to November after the October half term holidays.”
COVID stories
When lockdown struck in March, the rug was immediately pulled out from beneath the feet of Cornwall’s hospitality businesses. We speak to four local business owners to hear how they have managed through the pandemic
Businesses have had to think on their feet and adapt their plans and the way they operate just to survive.
Scarlet Wines, which has a small retail shop but relies mostly on wholesale, is a typical example. It faced by far the biggest challenge in its ten-year history. However, founder Jon Keast knew he could weather the storm by adapting quickly. After all, he had the thing everyone wanted during lockdown (wine!) he just needed to find new delivery mechanisms.
So overnight Scarlet Wines went from a wholesale wine merchant to a private delivery service. Jon put his whole catalogue online (no mean feat with over 300 lines), took orders via email, and delivered to the doors of the thirsty citizens of west Cornwall.
Scarlet’s new entirely electric delivery van was certainly putting in the miles, but Jon wanted to go a step further. He decided the time was right to invest in an e-cargo bike for deliveries in St Ives town. This turned out to be a particularly good move, as the town centre was subsequently closed to vehicles (but not the Scarlet bike!) during peak times each day.
For Jon and his team, simply adapting wasn’t enough; they decided to embrace the situation as a route to becoming a more environmentally friendly business in preparation for a greener postlockdown world. Scarlet Wines is now thought to be the only wholesaler in the south west with a fully electric transport system. Jon asked his customers whether they wanted him to continue with a delivery service post-lockdown and the answer came back unequivocally – yes! So it seems the business has evolved permanently as a result of the crisis.
“We used the complete break from normality to adapt our business model and dramatically reduce our carbon footprint,” he says. “Covid-19 is an awful thing, but it has made a lot of people re-evaluate their priorities – hopefully positive change will follow.”
NEW PUB
The start of lockdown was an intensely difficult period for all in the hospitality business, including Ben Tunnicliffe and his team at The Tolcarne Inn. Ben initially thought about launching a takeaway service, but it just wasn’t viable and safe to do so at the 300-year-old Inn, so almost the entire staff had to be furloughed.
Ben then heard about a scheme to provide free hot meals for residents in Newlyn who were struggling. He immediately offered the services of the pub to host the scheme, and his staff eagerly volunteered their time. Together they prepared and cooked almost 1,700 nutritious meals, free of charge to recipients referred by the Fishermen’s Mission, local schools and community groups.
The service was organised by the Fishing Animateur team in Newlyn and supported by Seafood Cornwall Training Ltd, and the cost of the ingredients was funded by grants from the Fishmongers’ Company and Seafarers UK.
Ben says: “The project is a source of great pride and it gave us something positive to focus on during what was mentally a very difficult time.”
And then, determined to come out of the crisis stronger than ever, Ben embarked on the launch of a second pub. He had been looking for the ideal second site for some time and, despite difficult trading conditions, refused to be thwarted in acquiring The Packet Inn near Prussia Cove – even by a global pandemic. The new opening has created jobs and provided a much-needed boost for suppliers as the autumn approaches.
“I will always be an optimist,” he says. “I just can’t help myself! I have so much faith in the quality and reputation of the Cornish food and hospitality scene, in the talented people who deliver and supply it, and in the level of support and appreciation from the public that I can’t help but feel we’ll come out of this stronger eventually.”
FIGHT FOR SURVIVAL
There probably hasn’t been a worse time to launch a new restaurant in living memory. Chef Ben Prior had just opened his intimate fine dining operation (Ben’s Kitchen at 27 The Terrace) in St Ives, when disaster struck. He’d been serving customers for two days when the Government ordered an immediate lockdown of the entire hospitality sector. Months of preparation and investment were rendered useless in an instant.
Ben and his team unfortunately fell through the gaps in support, and neither a Government grant nor the furlough scheme was accessible to them. The financial consequences put a strain on everyone, but they could have been dire had it not been for several factors.
Firstly Ben is resourceful and resilient, and was soon delivering his food far and wide as part of ‘Ben’s At Home’ dine-in service. Secondly, like many in the industry, Ben has a loyal customer base keen to support him in any way they could – including buying some of the South African wine he imports direct. Thirdly, mutual aid is never far away in Cornwall; Ben was soon working alongside Mick Smith of the Porthminster Collection, initially offering takeaways and now as part of the team at the reopened Porthminster Kitchen.
The crisis has changed Ben’s way of thinking. “I always thought about worse case scenarios, but a global pandemic was something I never envisaged – I don’t think anyone in the industry did,” he says.
“The restaurant I had planned to open was a small, fine dining set-up. With social distancing we could now only serve six people each evening; it’s just not viable to open under those circumstances.
“However, we in the hospitality sector are hardworking and resilient. If anyone can get through this it’s us. We’re already starting to think of ways we could make a living should a second lockdown happen. I think in the future we’re going to see even more creativity and adaptability in the sector as a result of what has happened.”
CARRY ON SMILING
The Driftwood Spars was one of the many complex and multifaceted businesses for which lockdown posed a huge challenge. Accommodation, weddings, brewery, restaurant, bar – Landlady Louise Treseder admits she felt like a rabbit in the headlights at times.
Once she’d overseen the early stages of shutdown, including rearranging a huge list of bookings and furloughing most of the staff, Louise turned her attention to the brewery. With a new head brewer to support, a craft beer range scheduled to be launched, and a new website long overdue, it was an area of the business where her work would reap rewards.
The range of craft beers - The Cove - has been a lockdown hit, garnering praise for Head Brewer Mike Mason as he settles into his new role. The website is live, and online orders coming in. Louise 1, Covid 0.
However, getting the historic and rambling pub fully operational again is a challenge Louise is still grappling with.
She created a socially-distanced beer garden in the car park and only allowed B&B guests in the pub initially, then in the next phase of reopening diners and drinkers were allowed back inside. In what the pub jokingly referred to as ‘St Agnes’s own version of the Crystal Maze,’ visitors were challenged to “navigate the one-way system, remain contact-less at all times and use our online ordering system without ‘accidentally’ ordering an extra portion of chips.”
Despite the difficulties, the pub has been praised by locals and visitors alike for creating a safe environment with strong procedures in place and doing so with a smile – perhaps the greatest triumph of all.
Louise says: “We’re treading a fine balance between making the pub totally inhospitable to the virus but still hospitable to customers, who still expect and deserve the warm Cornish welcome they’re used to at The Driftwood. Every day is a learning curve at the moment!”
WINNERS AND LOSERS
Business that have adapted are the ones that are thriving, says Zamu accountant Samantha Perkin.
Many clients in tourism/hospitality or supplying to these industries are still finding life very hard, with all grants long since gone and the issue now is to continue to trade past October when furlough finishes. They have brought staff out of furlough for the temporary increase in business and watching carefully with plans to furlough staff again if necessary. Some are feeling pessimistic and business closures could increase towards end of year.
Farmers and food producers have been affected badly if they supply direct to restaurants/hotels/cafes or close to the supply chain. Here no grants exists (unless rural rates or SBRR or some milk producer) and furlough doesn’t work as farms still need to be cared for. Those selling direct to the end user have been having a great deal of success.
Retail – If a specialist shop with loyal customers they tend to be in a stronger position. However, there are concerns about reduced turnover against fixed overheads such as rent etc.
There are of course winners and losers in the current climate. Businesses that have adapted their business and innovated are thriving. As an example, a tech company that produced a visitor flow at a tourist attraction via an app, now tell visitors where the quieter zones are and assists with social distancing. So, one solution modified to meet new needs that nobody would have believed 12 months ago.
Businesses need to keep an eye on the money, watch their costs and as always getting cash in the bank and not turnover is the key.
ON CALL
“FSB has dealt with hundreds of calls and continue to do so. Our role in helping our members to campaign for and navigate the help schemes and find solutions for those who were not eligible has been all consuming but a privilege. Why? Because Cornish businesses have simply risen to the challenge of this pandemic. Through situations of real hardship, they have demonstrated their incredible value to their communities by being innovative and fleet of foot, changing what they do to keep going all whilst supporting the vulnerable when going through hell themselves.”
Ann Vandermeulen, FSB Cornwall
THE TWILIGHT ZONE
Worldwide Financial Planning CEO Peter McGahan shares his thoughts on what has been a very strange few months
‘If you can’t change something, change how you think about it, and what you do about it’.
That’s the normal mantra, but more so over the last few Twilight Zone months.
In reality, we moved to ‘remote working’ 15 years ago by moving most of our work to a secure server. If you are sat on a social distanced boat in the Maldives or a random pub in Belfast, you just need the connection, and hey presto.
The Covid scenario has forced the necessity for us all to be able to work like that and our staff have been ultra professional and responded well to get the work done.
We had to furlough three staff because their jobs didn’t exist (ie a receptionist who greets customers) but we called them regularly and paid them full pay. They are important to us, and the rest of the team want to know they are ok too. Remote working has been cool for many, business and potentially completely reinvent especially with the nice weather, and we trust how we operate. our staff. Newton’s law says there is an equal and Will it take over? I don’t think so. Flexibility opposite reaction to every action. is there, but a fundamental psychological requirement is to be part of a team, to be part of a wider community, to laugh with your Consider this if you are worried about strategy: colleagues, and to be there for each other. On March 17, just as the UK was about to Nothing can take us away from that need, but we will see what the return to work in September brings us all. The short-term future is very much start taking Covid seriously, would you have considered Cineworld as an investment. It is one of the largest cinema chains in the Fear paralyses driven by fear and confusion. people and makes world. The FTSE 100 is often used as a measure of the UK stock market and its resilience. That is misleading, bordering on dishonest to consider doing that. The FTSE 100 is a global index with circa 70% of income from overseas assets, so with a weak sterling, the income is exaggerated upwards when it comes in. Someone did. They rose 365% over less than three months. Social distancing? In lockdown, we have taken the time to reassess company objectives, strategy and culture and recreate them weak, it blocks creativity and creates a negative feedback loop Sterling and the FTSE Allshare have had a our direction. Undoubtedly, there has been torrid time against most developed markets pain in the market and we are actively talking and that isn’t set to change with UK domestic to those financial advisers who wish to either stocks as loved as Donald Trump turning up join us or sell. to babysit your children. I can see that multiplying. Brexit hasn’t even arrived yet, and it looks like it will be a hard one. Markets/economies don’t like uncertainty, which is why the UK as an overseas investment destination has been unloved for so long.
Fear paralyses people and makes them weak, it blocks creativity and creates a negative feedback loop. The country needs direction and leadership to flip that around.
There has been nothing sustainable that has driven that loop to become positive which is why in UK domestic stocks, value stocks have literally been battered. The ‘Boris bounce’ didn’t happen.
We’ll all need to be nimble and fleet of foot to achieve our objectives in
A NEW ERA FOR employers
Following the Covid-19 crisis, businesses are now looking to the future, and from an employment law perspective, the landscape is now quite different. Employers are faced with a full range of challenging considerations including redundancies, employees returning to work safely, managing those working from home, as well as the furlough scheme and changes in legislation. Employment law expert at Coodes Solicitors, Philip Sayers, discusses the implications of the new era and shares his tips for employers to keep in mind.
REORGANISATION RETURNING TO THE WORKPLACE
Since the start of lockdown, many businesses From 1 August 2020 employers can ask have had to ask staff to work from home, employees working from home to return to increase remote working and introduce new the workplace, provided reasonable steps processes in order to survive. Roles may have been taken to ensure premises are have changed and there could now be an Covid-19 secure. A risk assessment must opportunity to examine and re-structure the be carried out and published for staff to business. see. Section 44 of the Employment My number one tip to employers is to communicate with your employees. People are fearful of change and will have concerns over job security. Engaging with your Employees can refuse to return to the workplace where they have a reasonable belief Rights Act states that employees can refuse to return to the workplace where they have a reasonable belief there is ‘serious and imminent danger’ to health and safety. Any refusals to return to the workplace must be properly considered with the benefit of legal advice. employees as early there is ‘serious and as possible will help maintain productivity and provide a better imminent danger’ to health and safety THE FURLOUGH SCHEME As changes to the furlough scheme continue, employers have to think emotional journey. about whether to bring staff back consultations with employees. A redundancy situation will be a stressful time, particularly for businesses suffering financially, therefore making sure you have the right advice and support is vital. permanently or use the ‘flexible REDUNDANCY can return on a pro-rata basis. There is If you are in a position where it’s possible an increasing cost of keeping people on that redundancies have to be made, I would furlough as employers now need to pay always recommend employers speak with a National Insurance contributions, pension lawyer first to ensure the correct legal process contributions, and from the start of is followed. This includes understanding September, 10% of salaries. This increases whether you have to enter into a collective to 20% from the start of October until the redundancy process and to manage scheme closes completely on 31 October.
furlough’ scheme – where staff
WORKING FROM HOME
Home working is looking to be the biggest change that will survive post-pandemic. Many employees may wish to continue to work from home, whether on a full-time or part-time basis.
My advice is to firstly review whether your employee is able to continue working from home safely. Although employers were unable to carry out a full risk assessment of homes at the time of lockdown, steps can now be taken. My number one tip here is to check you have all the right policies in place to cover employees working from home – including how you deal with flexible working requests.
Homeworking also comes with an increased risk of GDPR breaches and data theft, given that many employees will have been using their own devices. Having robust IT and data protection policies is vital to ensure your business is protected.
