Published: 24/11/2022 By Hannah McCormackThe number of restaurants having to close their doors is sadly on the rise, confirmed by figures from the Insolvency Service, in the last quarter restaurant insolvencies were up over 40% compared to the previous period.
Due to inflation, rising costs in energy, food and drink, coupled in with the country now being in a recession, it’s all too much for many restaurants to survive. Customers are being more careful with their money meaning demand is less, costs continue to rise creating a lethal combination of financial worries.
Bouncing back after Covid where restaurants were forced to close their doors, many saw a surge in business as the country embraced being out of lockdown. However, as the cost of living crisis is hitting much of the nation it’s the pubs and restaurants that are really struggling.
Industry experts are predicting more than a third of hospitality businesses could go bust by early 2023!
We ask our Insolvency Director, Phil Cake, if he has seen a rise in hospitality cases and what he predicts for the future in the industry:
“We are already seeing an increase in enquiries from across the hospitality sector. With high energy prices and in the absence of further government support to the sector, I expect the pressures on these businesses to worsen. The inevitable resulting business failures will have a wider impact into their supply chains.”
If your business is struggling financially, come and talk to us as there may be options to try before needing to go down the official insolvency route. Call us on 020 8661 7878 or email firstname.lastname@example.org the first meeting is always free and confidential.