Sales at pubs, bars and restaurants in the City of London last week were almost half pre-pandemic levels, as rail strikes and wintry weather caused a string of bookings to be cancelled. The financial district was the worst affected part of London, with sales down 46% in the week beginning 12 December compared with the same period in 2019, according to the sector’s trade body, UKHospitality. Across all London venues takings slumped by 37%, adjusted for inflation, in a week that included four days of strikes by railway workers. UKHospitality said the industrial action, combined with snow and frosty conditions, led to a cancellation rate of 30% across the UK, as Christmas parties and gatherings were called off. Spontaneous meals and drinks out also fell victim to travel upheaval, as “walk-in” visits across the UK last week were down by 28%, adjusted for inflation, compared with 2019. The number of in-store transactions at the sandwich shop chain Pret a Manger fell at most locations in the week to 15 December. The biggest drop in sales was in stores at regional stations, down 32% compared with a week earlier, and there was a 27% slide at London stations and City outlets. Hospitality businesses are braced for more disruption and cancellations during the Christmas holidays and into the new year. Fresh rail strikes are planned from late afternoon on Christmas Eve until 27 December, when thousands of workers, including key signalling staff, will not sign on for their shifts. Most train services are expected to be wiped out for five consecutive days between 3 and 7 January when RMT union members and train drivers take further strike action. UKHospitality had forecast a £1.5bn hit to sales from industrial action in December and early 2023, but is now predicting a figure of £2.3bn. “I think the drop-off in footfall and general trading is greater than we anticipated,” said Kate Nicholls, the industry body’s chief executive. “It was a more substantial hit, taking into account the weather and other factors, that meant there was a more severe impact on walk-ins.” In a further sign of the strain that the economic conditions are putting on hospitality sector finances, The Restaurant Group, the owner of Wagamama, announced on Thursday that it had negotiated new debt terms with lenders, giving it an extra two years’ coverage. Its debt package consists of a £220m loan, plus a £120m revolving credit facility with its existing lenders. Hospitality businesses typically expect to make a third of their annual sales during the pre-Christmas party period. Many businesses are struggling with the soaring cost of food and drink, energy and staffing, while consumers are tightening their belts amid the cost of living crisis. The strikes and snow also affected retailers, with overall retail footfall sliding to 77% of 2019 levels in the week to 18 December, according to the retail data analysts Springboard.