According to The Caterer, a fifth of UK restaurants risk insolvency as they battle tough trading conditions.
Quoting new figures from accountancy firm Moore Stephens, a total of 14,800 restaurants face the prospect of going under as a result of rising labour costs and an escalation of food prices.
The latter is a direct result of the weak pound which has decreased in value by over 13% against the euro and 12% against the US dollar since the Brexit referendum last June.
With the UK importing over half of its food, 75% of that coming from the EU, restaurants have been faced with a decision to either raise prices or reduce profit margins.
The National Living Wage also increased to £7.50 an hour in April, up from £6.70 in 2015, and will rise to at least £9 an hour by 2020.
An increase in business rates has been an added pressure.
The number of restaurants entering insolvency has increased by 13% in 2016/17 to 1,544 from 1,363 in 2015/16.
Well know brands such as Byron, Prezzo and Jamie’s Italian have all closed outlets in the last twelve months, with Handmade Burger Co going into administration earlier this year.
The full article can be found here.