Pubs and restaurants fear Christmas takings will fall by 40% due to the latest Covid restrictions.
UK Hospitality said customers were already staying away, and the loss of trade over what is meant to be the most lucrative month in the year would cause irreparable damage.
Data from the trade body for Monday to Sunday of last week showed a 13% drop in trade and a 15% increase in cancellations, compared with pre-pandemic levels.