Recent reports have highlighted the pressures on UK high street bars and restaurants as they suffer a downturn during Brexit uncertainty.
The UK services sector is reported as being under severe financial distress with worrying figures showing a below forecast PMI of 50.2 in July 2019. Rising staff costs due to minimum wage increases, as well as a weakened pound – making supplier and operating costs more expensive – has contributed to the downturn in finances. The report from Credit Benchmark states that oversupply has also been an issue due to 4,000 new openings across the UK in the past four years – with many of these in areas of low footfall. The UK has seen the closure of many big players in the restaurant and bar industry in recent months; these include Jamie’s Italian, Strada, Prezzo, Carluccio’s and Gourmet Burger. A report from accounting firm Moore Stephens reported insolvency figures of 1,219 in 2018, up significantly from 2017’s total of 985.
Drinks image courtesy of bridgesward from Pixabay
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