Top dining chains see losses swell as inflationary pressures hammer the high street
The country’s top restaurants have seen losses swell considerably in the past six months, surpassing the £800m mark.
According to analysis from accountancy firm UHY Hacker Young, losses at the top 100 restaurants swelled 24 per cent from £673m to £832m in just the past six months shows a new study by UHY Hacker Young, the national accountancy group.
Losses have grown as restaurant brands have been forced to carry out huge restructuring schemes, with some writing off debts through Company Voluntary Arrangements (CVA).
What’s more, inflationary pressures have been weighing on major chains as headwinds have multiplied in recent months.
Many restaurants had overextended themselves “significantly” in the years leading up to the pandemic, and were now struggling with “inflation running out of control,” Peter Kubik, partner at UHY Hacker Young said.
“With economic dark clouds still gathering and the UK facing a cost of living crisis, there are still strong headwinds facing the casual dining sector,” he added.
However, Kubik was confident that “the worst is over,” with restaurants having divested underperforming branches and entered into CVAs.