Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Restaurant vacancies fall by 11% in six months

21 May 2018 by
Restaurant vacancies fall by 11% in six months

The number of job vacancies in the UK restaurant sector has dropped by 11% in the last six months, accountancy firm Moore Stephens has reported.

Advertised vacancies fell from 36,900 in November 2017 to 32,900 in April 2018, a period that has seen many high-profile brands forced to close restaurants amid tough trading conditions.

The fall reflects an increase in insolvencies among restaurant businesses, which jumped 20% to 984 in the last year, up from 825 in 2015/16.

Moore Stephens said the industry has been hit by minimum wage increases and oversupply as well as pension and apprenticeship relationship costs.

"Many restaurants simply cannot afford to remain open at the current level of staffing costs and with consumer confidence so weak there doesn't seem to be much relief in sight.

"Five years ago, it was usual for around a quarter of revenue at most restaurants to go on wages for its staff. Now, if a restaurant spends 30% on staff pay, it is considered to be doing exceptionally well.

"Many restaurants are doing their best to avoid redundancies by freezing recruitment or reducing shift numbers by closing on quieter days, such as Mondays, but even that is a painful process.

"Struggling restaurants would really like the government to start looking at whether payroll costs could be kept under control in areas like national insurance."

Hospitality gender pay gap strides ahead of national average>>

Get The Caterer every week on your smartphone, tablet, or even in good old-fashioned hard copy (or all three!).

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking