Restaurant bankruptcies in United Kingdomwhere inflation has topped 11% and the economy is faltering, are more than during the pandemic, when businesses were forced to shut down for months but received government aid, a study by Mazars says.
The number of these bankruptcies has grown in the country by 59% over the past year, from 984 to 1,567, according to the company. In the last three months they have increased by 15% compared to the previous quarter.
“Restaurant bankruptcies are happening at a much faster rate now than during Covid“, said Rebecca Dacre, partner at Mazars, according to the study released today as reported by the Athens News Agency.
The restaurants of the country are faced with the highest level of inflation since 1981, which is driving up food and energy costs, and with a sharp slowdown in consumer spending, as well as labor shortages, especially in chef jobs, which are driving up staff costs, says Mazars.
The season of Christmas is “usually great for business” of the industry, but “restaurants are preparing for a very difficult winter and many are fighting a real battle to survive,” Dacre added.
According to the company, there is a risk of more bankruptcies if government support is not increased.
Chancellor of the Exchequer Jeremy Hunt unveiled an austerity budget last Thursday to fix Britain’s finances, despite the country already in recession and living standards plummeting, according to the Office for Budget Responsibility (OBR).
Source: News Beast
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