Bankruptcies in UK catering are rising faster than during the COVID-19 pandemic

Research by consulting firm Mazars showedthat the proportion of insolvent cafes and restaurants in the UK has risen by 60% over the past year. This is 1.5 times more than during the COVID-19 pandemic. If in 2020-2021 there were 984 cases of bankruptcy in the restaurant business, then in 2021-2022 this figure increased to 1567. Over the past three months, there have only been more bankruptcies. This quarter, 453 enterprises closed against 395 in the previous one.

Experts cite inflation and reduced demand from customers as the reasons for this situation. Another problem is the shortage of staff that British catering establishments have faced since Brexit – new immigration rules do not allow EU citizens to work in Britain as freely as before.

According to a joint report by UK Hospitality and the British Beer and Pub Association (BBPA) at the end of October, 77% of UK restaurants reported a decline in the number of visitors. This means that by the beginning of 2023, more than a third of the UK hospitality business could go bankrupt.

Valeria Khaibulina