UK restaurant closures increased by 60% in the last year.

Due to a lethal combination of soaring energy costs, staff shortages, and less bookings, UK restaurants are closing at a faster rate than during Covid.

In 2021-22, there were 1,567 insolvencies, which is 60% higher than in 2020-21, which saw 984 insolvencies. The figure includes 453 over the last 3 months, which is up from 395 in the previous quarter.

Industry groups, such as UK Hospitality and the British Beer and Pub Association, said that more than one third of hospitality businesses could go bust by early 2023.

Following on from covid lockdowns, the industry got to experience a boost in business during Summer 2022. However, restaurants are now battling with rising inflation - which has increased energy, food, drinks and means their customers have less money to spend when they go out.

Research from Barclaycard found that over 50% of Brits planned to cut down on essential spending, which has caused concerns for businesses during the Christmas period, when many businesses make most of their profits.

Article by The Guardian