75% of UK hospitality firms at risk of insolvency

Three quarters of hospitality businesses in the UK are at risk of insolvency in the next year due to the Covid-19 pandemic, according to a survey by UK Hospitality.

As reported by Eater London, the recent survey, conducted by UK Hospitality and on-trade data analyst CGA, found that over 75% of restaurants, pubs and bars in the UK fear not being able to pay their bills over the next 12 months.

Of the 12,000 outlets surveyed, 20% said they faced a significant risk” of insolvency or “expect” insolvency within the next year. Over half believed there was a “slight risk” of insolvency, and less than a quarter of outlets believed they faced no risk of insolvency over the next year.

“These new figures underline the scale of the impact of Covid-19 on hospitality and paint a stark picture of its immediate future,” UK Hospitality’s chief executive, Kate Nicholls, said.

Of the 20% facing a serious risk of insolvency Nicholls said, “This is a desperate position to be in”, and that the sector had “never looked shakier”.

In response to the sobering statistics, UK Hospitality has called on the government to offer the struggling on-trade “decisive support”, warning that if it isn’t given, “many businesses will face ruin, with hundreds of thousands of jobs at risk.”

On 3 August the government’s ‘eat out to help out’ scheme launched, offering 50% discounts on food of up to £10 a head at many UK restaurants.

Leave your reply

Most Recent Stories

Environmental activists target Salt Bae's London restaurant

The Knightsbridge outpost of Nusret Gökçe, known to the world as 'Salt Bae', was targeted by activists from campaign group Animal Rebellion who called for the restaurant famous for its gold-covered steaks to serve sustainably-sourced ingredients.

Four in five bars to increase range of no and low alcohol drinks

More than 80% of bars plan to capitalise on a healthy drinking trend among consumers by increasing their range of no and low alcohol drinks in 2023, new research shows.

Jumilla sets its sights on gourmet chefs in 2023

DO Jumilla has conducted an intensive study into the huge pairing potential of wine from this Spanish region with fine cuisine, and is hitting up the world's top chefs with its findings.

Maru in Mayfair appoints Vitalijus Salagubas as new sommelier

Mayfair omakase restaurant Maru has announced the appointment of Vitalijus Salagubas as general manager and sommelier.

Unfiltered: Natalia Ribbe

Natalia Ribbe, who runs Margate wine bar and shop Sète, speaks to Douglas Blyde about bad pairings, how to find value on a wine list, and whether she's ever had to break up a fight between customers.

Most Recent Stories

Environmental activists target Salt Bae's London restaurant

The Knightsbridge outpost of Nusret Gökçe, known to the world as 'Salt Bae', was targeted by activists from campaign group Animal Rebellion who called for the restaurant famous for its gold-covered steaks to serve sustainably-sourced ingredients.

Four in five bars to increase range of no and low alcohol drinks

More than 80% of bars plan to capitalise on a healthy drinking trend among consumers by increasing their range of no and low alcohol drinks in 2023, new research shows.

Jumilla sets its sights on gourmet chefs in 2023

DO Jumilla has conducted an intensive study into the huge pairing potential of wine from this Spanish region with fine cuisine, and is hitting up the world's top chefs with its findings.

Maru in Mayfair appoints Vitalijus Salagubas as new sommelier

Mayfair omakase restaurant Maru has announced the appointment of Vitalijus Salagubas as general manager and sommelier.

Unfiltered: Natalia Ribbe

Natalia Ribbe, who runs Margate wine bar and shop Sète, speaks to Douglas Blyde about bad pairings, how to find value on a wine list, and whether she's ever had to break up a fight between customers.