more restaurants have gone bankrupt in recent months than during the health crisis

Over the past three months, restaurant closures across the channel have increased by 15% compared to the previous quarter.

Restaurant bankruptcies in Britain, where inflation has topped 11% and the economy is faltering, have been higher in recent months than during the Covid-19 pandemic. This is according to a study by Mazars, published on Monday.

According to this work, the number of such errors has increased in the country by 59% over the past year, from 984 to 1567. Over the past three months, they have increased by 15% compared to the previous quarter.

“Restaurant business bankruptcies are now happening at a much faster pace than during Covid,” said Rebecca Dacre, a partner at Mazars, quoted in the study published on Monday.

Higher costs and fewer customers

First, the nation’s restaurants are facing a level of inflation not seen since 1981, driving up the cost of food and energy. But they also have to deal with a sharp slowdown in consumption, in addition to a labor shortage, especially for chef jobs, which drives up personnel costs, explains Mazars.

The Christmas period is “usually unusual for businesses” in the sector, but “restaurants are preparing for a very difficult winter and many are facing a real battle to stay afloat”, added Rebecca Dacre.

And according to the government, new bankruptcies may arise without increased support from the government.

Chancellor of the Exchequer Jeremy Hunt unveiled a tough budget last Thursday to fix Britain’s finances, despite the recession the country has already entered and falling living standards, according to the OBR, the government’s budget forecast.

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