PLEASE NOTE: Information in this article is correct at the time of publication, please contact DFA Law for current advice on older articles.
The squeeze on incomes which has been facing households for a number of years has led to severe problems in industries that depend on ‘discretionary spending’, such as the restaurant trade.
A recent report by a large firm of chartered accountants revealed rapidly rising insolvency rates in the restaurant industry in 2017.
At least three substantial chains are closing a significant number of outlets and/or looking for buyers. Similarly, the number of pubs still trading has been in decline for several years as they face increasing competition from major groups and an increase in drinking at home.
The effect of the squeeze will raise concerns for anyone supplying the restaurant sector, particularly landlords. If you are a supplier to the hospitality sector and are worried about your customers, particularly those that are taking more and more credit, contact us for advice.