From June 2018 to June 2019 there has been more than 1,400 restaurant closures in the UK. It comes at a time when the restaurant sector is becoming heavily over-saturated as more and more establishments want a slice of the pie.
The problem is, too many market players combined with increasing cost for businesses is making it harder and harder to stay afloat in the restaurant industry.
Other factors also come into play, such as the fact that consumer spending is down over the last year, meaning that people are reluctant to eat out.
Experts are calling this problem a crisis for restaurants, and accountancy companies that are gathering data on the problem are saying that the crisis will hit restaurant chains the hardest. In particular, chains that have lost touch with their customers.
However, there are hundreds of small independent restaurants that are not removed from this issue, and they are also facing insolvency.
The experts are saying that even if you have a loyal following as an eatery, it still does not guarantee safety in these tricky times. Even long standing restaurants that have built a reputable name for themselves are facing insolvency.
Over the past few years, the restaurant sector as a whole has been hit by a surging increase in the number of closures.
A report from October 2017 found that 20 per cent of restaurants in the UK were at a real risk of going bust.
In 2019, the collapse of Jamie Oliver’s restaurant chain came as quite a shock, and resulted in the around 1,000 job loses.
Moving forward into the new decade, restaurants will have to be strategic in their approach in securing business from customers. They can no longer rely on established returning customers, and must constantly expand their customer base if they are going to survive.