Restaurants in the UK are closing quicker than they did during the COVID-19 economic crisis. Experts predict that more than a third of UK restaurants will close by 2023.
The Guardian blamed the “toxic mixture” of rising energy prices, staff shortages and falling bookings as the reason for the crisis. According to the Guardian, restaurant closures rose by 60% over the past year. According to him, half of all small British businesses said they would close down after the holidays. This happened in the first quarter or second quarter of 23. Inflation has also led to higher food and energy prices, which is increasing the likelihood of restaurants closing.
The Guardian reported that the UK Hospitality, British Beer and Pub Association had foreseen mass restaurant closings. ”
The Guardian reported, citing Barclaycard that more than half of Britons intend to cut their “essential spending”. Some businesses saw a temporary rise in sales after COVID lockdowns were temporarily lifted. Christmas is when many businesses make their majority of their annual profits.
Christmas trading season is a great time for hospitality businesses. While there is a good chance of them going under, it is very unlikely that they will be able to get enough government support.
The Guardian reports that “post-Brexit migration laws prevent EU citizens working in Britain.” This has resulted in higher wages. The Guardian didn’t mention that more than 40,000 boat migrants arrived in Britain last year. Does this not theoretically mean that there are other workers?
Mazars, an advisory company, reported that the Guardian reported that sector closures rose by 60%.