15% rise in restaurants entering insolvency
Despite quarter 2 statistics revealing a drop in corporate insolvencies, it has been highlighted that the number of restaurants entering insolvency has increased by 15% compared to the same time last year.
According to accountancy firm Moore Stephens, 747 restaurants entered a formal insolvency process compared to the 648 from the previous year. It has been mentioned that un-seasonal weather during the long winter at the beginning of 2014 had a negative effect on the country’s restaurant trade.
Increases in food prices and gas & electric bills have all increased over the last 12 months which is added pressure to restaurant operators.
Mike Finch, Partner at Moore Stephens said: “The fact that the weather can push so many restaurant businesses into insolvency shows how fragile the finances can be in this sector.”