Restaurant bankruptcies in the UK, where inflation has topped 11% and the economy is reeling, have been higher in recent months than during the Covid-19 pandemic. This was shown by a study by Mazars, published on Monday.
According to this work, the number of failures of this type has increased in the country by 59% in the last year, from 984 to 1,567. In the last three months they have increased by 15% compared to the previous quarter.
Higher costs and fewer customers
The country’s restaurants are first facing a level of inflation not seen since 1981 that is driving up the cost of food and energy. But they also have to contend with a sharp slowdown in consumer spending, plus labor shortages, especially for chef jobs, which are driving up staff costs, Mazars explains.
The Christmas period is “normally exceptional for business” in the industry, but “restaurants are preparing for a very difficult winter and many are facing a real battle to stay afloat,” adds Rebecca Dacre.
And according to the cabinet, further bankruptcies could occur, without further support from the government.
Finance Minister Jeremy Hunt unveiled a strict budget last Thursday to fix Britain’s finances, despite the recession the country has already entered and plummeting living standards, according to the OBR. , the government budget forecast.
Source: BFM TV
