Restaurants in Birmingham say they have lost up to 80% of their festive reservations.
The government introduced 'Plan B' measures, which included urging people to work from home where possible and wear face coverings in crowded settings, last week.
The guidance was in response to the spread of the Omicron variant, which currently accounts for about 20% of coronavirus cases in England. Although when they were announced, there was no specific guidance for pubs and restaurants, businesses say it has affected their customers' confidence and footfall in the city centre.In Birmingham's China Town, James Wong who runs Chung Ying restaurant, said the cancellations were "depressing".
"Seventy per cent of our bookings have been cancelled," he said. "It's looking pretty bleak at this time."Mr Sharma said his business is now planning "day by day" due to the uncertainty.
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