Latest figures from accountancy firm, Moore Stephens, reveals the number of restaurants entering insolvency has increased 15% year on year.
747 restaurants entered either a CVA, administration or liquidation from June 2013 to June 2014, compared to 648 the year before. Despite overall insolvency levels falling, the restaurant sector stands out as one area that is facing particular financial distress. A reason for this rise could be due to the very bad weather and flooding we saw over the winter – customers would understandably be put off going out for dinner if it’s difficult to get to the restaurant because roads were blocked off by storms and flooding. Together with a rise in electricity and gas charges, it’s hardly surprising restaurant businesses have been hit. In addition, with many consumers adjusting their spending habits to save for essential costs, restaurant trips are usually ticked off as luxury expenses, therefore less people are budgeting to go out for dinner.