Hospitality and leisure insolvencies are at their lowest point for more than two years, according to figures from financial advisory company PwC.
There were 1,794 insolvencies in the sector during the past 12 months, compared with 1,816 in the same period the year before. During the first quarter of this year, the figures were down 10% and 27% compared with the final quarter of 2012 and the same quarter last year respectively.
The biggest drop of 13% between the last two quarters was seen in restaurants. Q1 of 2013 saw 38 hotel, 148 restaurant and 90 insolvencies.
David Chubb, PwC business recovery partner and hospitality and leisure specialist, said that the figures are perhaps a sign that businesses have adapted to the current economic conditions in order to ensure their survival.
"Restaurants have had a good quarter but I think it is difficult to read too much into this quarter of results. It may be that consumers are getting used to the new normal and certainly the culture of eating out now seems built into the UK consumer psyche," he explained.
"The challenge restaurants have going forward is how to pass on increasing food prices to the customer, especially as recessionary behaviours are now the norm and the focus on buying clever/dining out clever has certainly stuck with the consumer."