Restaurants ‘entering winter in freefall’ as insolvencies leap by almost half
There has been a tsunami of restaurants entering liquidation in the quarter to September, causing hospitality leaders to renew cries for government support this winter.
According to recent numbers from the Insolvency Service, the number of food venues facing insolvency sky-rocketed 46 per cent in the most recent quarter.
Some 158 businesses went into liquidation across the UK, compared to a sum of 108 the previous quarter, according to the an analysis of official data from RPG Chartered accountants incorporating Crawfords.
Businesses have been grappling with elevated operating costs across energy, ingredients and labour, all while consumer confidence has tumbled in recent months.
Trade bodies have urged ministers to issue further financial aid as the sector approaches its crucial Christmas trading period and then into the bleaker, traditionally slower winter months.
Ahead of the upcoming autumn fiscal statement on 17 November, bosses have called for a reduction in VAT relief for hospitality and leisure businesses as well as an extension of business rates relief, plus additional targeted energy bill support.
The latest insolvency data was “just the tip of the iceberg,” as firms approach the colder months, according to the night time economy adviser for Greater Manchester, Sacha Lord.
Venues were “entering winter in freefall” with many operators fearing the survival of their businesses beyond the end of the year, the nightlife chief said.
Mounting costs mean that 35 per cent of businesses are anticipating they will be operating at a loss or unviable by the end of the year, a survey by UKHospitality, the British Beer and Pub Association (BBPA), the British Institute of Innkeeping (BII) and Hospitality Ulster, revealed last week.