Hospitality insolvencies have soared by 59% as the sector buckles under a “toxic mix” of reduced consumer spending and rising labour and energy costs.
According to corporate advisory specialist Mazars, almost 1,600 companies in the sector fell into financial distress during the third quarter.
In the three months the number of restaurant companies becoming insolvent was 453, up from 395 in the previous quarter.
Rebecca Dacre, a partner at Mazars, said: “Insolvencies of restaurant businesses are now happening at a far faster rate than during Covid. It is a very toxic mix of rising input costs, sharply rising finance costs and weak demand.”
