Restaurant insolvencies increased by 20% in 2017
Restaurant insolvencies increased by 20% in 2017 with 984 entering administration, up from 825 in the previous year, accounting and advisory network Moore Stephens has reported.
The figures have been revealed after January 2018 saw a raft of closures among both casual dining and independent restaurants.
Moore Stephens said the last 10 years have seen an "unprecedented" level of openings creating an "over restauranted" market.
Increasing competitiveness on the high street came at a time when rising staff and food costs, business rates and the falling pound all hit the profitability of restaurants.
Jeremy Willmont, head of restructuring, said: "Pressure on the restaurant sector is now hitting even the biggest names on the high street.
"The jump in insolvencies over the last year demonstrates just how tough the current economic conditions are for the restaurant trade.
"Running a restaurant business is becoming increasingly challenging. Employment costs are rising and the market in areas such as London is becoming ever more saturated.
"Under such tough trading conditions, restaurants should be cautious about building up debt. They can very quickly become over extended as costs continue to rise."
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