Casual dining sector 'to be hardest hit' by cost of living crisis

The casual dining sector is likely to be among the hardest hit during the cost of living crisis, according to turnaround experts.

The latest Societal Impact Report by the Institute for Turnaround (IFT) revealed that more casual dining restaurants may seek help with their business over the next year due to the increasing number of consumers squeezed by rising energy bills, higher food prices and increased mortgage costs.

Companies House data showed a rise in the number of distressed restaurants in the same sector in the last quarter of 2022.

Earlier this month, it was revealed that high street burger chain Byron lost £99m in value over the past 10 years.

The data from the IFT report, which was collated by FRP analysis, showed that the highest number of struggling businesses in the third quarter of 2022 were located in the south-east of England, followed by London.

It predicted that inflationary pressures, interest rates, soaring energy bills and labour shortages will continue well into 2023.

Andy Leeser, chairman of IFT, said: “The directors behind UK businesses large and small, having risen to the manifold challenges of the Covid pandemic and associated lockdowns, might have expected a period of calm to recover and rebuild.

“Instead, firms have found themselves faced with multiple new challenges. A cost-of-living crisis is hitting consumers, whilst a cost of doing business crisis is combining with pre – existing stresses to put a great deal of pressure on UK PLC.”