In the past three months, restaurant closures across the channel have increased by 15% compared to the previous quarter.
Restaurant bankruptcies in the UK, where inflation has risen to 11% and the economy is faltering, have been higher in recent months than during the Covid-19 pandemic. This is what a study by Mazars published on Monday shows.
According to this work, the number of such failures has increased by 59% in the country in the last year, from 984 to 1567. In the last three months, compared to the previous quarter, there has been an increase of 15%.
“Restaurant bankruptcies are occurring at a much faster rate now than during the Covid era,” said Rebecca Dacre, a partner at Mazars, who was quoted in the study published on Monday.
High costs and fewer customers
The nation’s restaurants are first facing inflation not seen since 1981, which is driving up food and energy costs. But they have to deal with a sharp slowdown in consumer spending, in addition to labor shortages, especially for chef jobs, which drive up staffing costs, Mazars explains.
The Christmas period is “usually exceptional for businesses” in the sector, but “restaurants are gearing up for a very tough winter and many are facing a real battle to stay afloat,” said Rebecca Dacre.
According to the cabinet, new bankruptcies may occur without increased government support.
Chancellor of the Exchequer Jeremy Hunt unveiled a tough budget to fix Britain’s finances last Thursday, despite the country already entering recession and falling living standards, according to the OBR, the government’s budget forecast.
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