Yorkshire restaurants resilient in face of insolvency
Around a third of restaurants in Yorkshire face a higher than average risk of insolvency, but despite this the region is showing remarkable resilience, new figures show.
According to insolvency and restructuring trade body R3, 32.8% of Yorkshire’s restaurants faced an enhanced insolvency risk in September, although that is below the national average of 34.2%.
Only the North East restaurant sector performed better than Yorkshire, while 36.4% of restaurants in the South East displayed heightened insolvency risk levels.
Just under 2,000 Yorkshire restaurant businesses were deemed to be at above average risk, of a total of nearly 6,000 active firms.
R3 suggest the region is displaying signs of recovery, as five further sectors all displayed a month‐on‐month rise in risk levels of below 1%.
These included the region’s construction, manufacturing, technology and IT, professional services and agricultural sectors, while across all 11 sector’s surveyed by R3, the average risk increase was 0.19%.
R3’s Chair for Yorkshire, Eleanor Temple, noted that the restaurant sector has been adversely affected by business rescues, administrations and restructuring practices in the past 12 months.
However, she said that despite the issues seen by a number of high street eateries, the number of restaurants is growing as challenger brands attempt to make their mark.
Numerous operational issues have impacted on restaurant finances in the last year, as rising competition, coupled with increased business rates, labour costs and food prices have put pressure on profits.
The figures were compiled using Bureau van Dijk’s fame database and provide a picture of business stability based on company information and director track records.
This provides information on businesses that may face a heightened risk of insolvency in the coming 12 months, delivered on a month by month basis.
R3 notes that uncertainty around Britain’s place in the EU is influencing investment and growth plans and has urged businesses facing distress to seek professional assistance at the earliest opportunity.
Doing so increases the number of potential recovery options that may be available and should also limit any current problems from escalating
By Phil Smith