Restaurant insolvencies rise by 60%

The number of restaurants falling into insolvency has increased by more than 60% in the past year. New data from accountancy firm UHY Hacker Young showed that 1,406 restaurants in the UK closed their doors in the 12 months to May, up 64% on the previous year. In proportional terms, that is an even larger increase in closures than for the wider hospitality industry, which saw a 56% rise in insolvencies over the same period. “Pressure is rising on the restaurant sector every day. More and more of them are shutting their doors as a result,” said Peter Kubik, a partner at UHY Hacker Young. “Restaurants that only just managed to survive the pandemic thanks to government support are now facing fresh challenges in the form of rising inflation, a post-Brexit labour shortage and consumers who simply cannot afford to spend as much.” The Guardian