THE number of restaurants going bust has risen sharply amid staff shortages and rising inflation, according to a study published today.

UHY Hacker Young said the total jumped from 856 in 2020-21 to 1,406 in the past year.

Peter Kubik of the accountancy firm said restaurants are facing spiralling inflation, decreased consumer spending and a labour shortage.

Previous research by the firm found restaurants have already seen losses rise to more than £800 million in the past six months as they felt the effects of major restructuring programmes after the pandemic.

Mr Kubik said: “Pressure is rising on the restaurant sector every day. More and more of them are shutting their doors as a result.

“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.

“Smaller restaurants are suffering the most from a shortage of EU staff post-Brexit.”

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Monday, July 25, 2022

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