That’s according to new data from accountancy network UHY Hacker Young, which puts the rise down to spiralling inflation, decreased consumer spending and a shortage of labour.
Insolvencies within the restaurant sector are even higher than in the wider hospitality industry, which has seen a 56% increase in company insolvencies in the past 12 rising from 1407 to 2193*.
Previous research by UHY Hacker Young recently found that restaurants have already seen their losses rise to more than £800 million in the past six months as they felt the effects of major restructuring programs following the pandemic.
Peter Kubik, Partner at UHY Hacker Young, says restaurants are facing major threats from The past quarter represents the largest number of restaurant insolvencies since the Insolvency Service began reporting monthly statistics during the COVID pandemic.
“Pressure is rising on the restaurant sector every day. More and more of them are shutting their doors as a result,” he says.
“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.”