The number of restaurant insolvencies has increased sharply in the past year amid staff shortages and rising inflation, according to a new study. Accountancy firm UHY Hacker said the total jumped from 856 in 2020/21 to 1,406 in the past year.
Peter Kubik, of UHY Hacker Young, said restaurants are facing spiralling inflation, decreased consumer spending and a labour shortage. Previous research by UHY Hacker Young found restaurants have already seen losses rise to more than £800 million in the past six months as they felt the effects of major restructuring programmes after the pandemic.
Mr Kubik said: “Pressure is rising on the restaurant sector every day. More and more of them are shutting their doors as a result. 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.
