London, July 25 The number of UK restaurants falling into insolvency has increased by more than 60 per cent in the past year amid worker shortages and the cost of living crisis, which has forced customers to cut back on spending, media reports said.
New data from the accountancy firm UHY Hacker Young showed that 1,406 restaurants in the UK closed their doors in the 12 months up to May, up 64 per cent as compared to the previous year, The Guardian reported.
In proportional terms, that is an even larger increase in closures than for the wider hospitality industry, which saw a 56 per cent rise in insolvencies over the same period.
It comes on top of a number of high-profile restaurant businesses, including
"Pressure is rising on the restaurant sector every day. More and more of them are shutting their doors as a result," said Peter Kubik, a partner at UHY Hacker Young, The Guardian reported.
"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."
Research published in June, by UHY, found that losses at the top 100 restaurant groups had risen to more than £800m in the previous six months after being forced to undergo major restructuring programmes during the pandemic, when they were forced to subsist on state support packages that included business rates holidays and furlough payments for staff.
Businesses across the UK have since been dealing with a slowdown in consumer spending, as the prices of everything from gas and electricity to food and clothes soar, The Guardian reported.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor