Losses across leading restaurant groups increase by almost 25%

12 June 2022 by
Losses across leading restaurant groups increase by almost 25%

Losses at the top 100 UK restaurant group hit £832m in the last six months, a 24% increase on the preceding six months.

The six months previous had seen losses amounting to £637m, according to accountancy group UHY Hacker Young. The last six months have seen the final Covid support measures come to an end while food and energy costs soar. Operators have told The Caterer the conditions have 'totally messed up' operating models.

Despite the figures the accountancy firm has said there are some positives with restructuring moves from major groups likely to shield them in the coming months.

Peter Kubik, partner at UHY Hacker Young said: "Losses among the UK's major restaurant chains have reached enormous proportions. Many of them overextended themselves significantly over recent years, just in time to be hit by Covid and inflation running out of control.

"With economic dark clouds still gathering and the UK facing a cost of living crisis, there are still strong headwinds facing the casual dining sector. Restaurants are likely to be under a lot of pressure for some time yet. However we feel the worst is over.

"While some restaurants have disappeared from high streets altogether, many have managed to save themselves with far-reaching restructuring programmes. While the sector is not out of the woods, the groups that have dropped underperforming branches and shed debt through CVAs are in a better state to compete."

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