Hospitality insolvencies climb to 826 in Q1
This represents a 3% increase from the previous quarter.
The number of hospitality businesses entering insolvency returned to an upward trend in the first quarter, with 826 accommodation and food service companies, including hotels, restaurants, and pubs, closed down between January and March, according to the Buchler Phillips Hospitality Index (BPHI).
This is a 3% increase from the previous quarter.
Government figures show insolvencies in the sector jumped by 4% in March from February, with monthly closures staying above 270 so far this year, up from 224 in December.
Notable closures included high street chain Itsu and London independents Locanda Locatelli, La Goccia, and Lyle’s, which all shut their kitchens.
In the pub sub-sector, 303 UK units closed in Q1, with another 46 converted to other uses. Hotel casualties included Bridlington’s landmark Expanse Hotel, ending 90 years of trading.
Pubs, hotels, and restaurants are bearing an estimated £3.4b of additional costs, not least because of the increase in employers’ National Insurance contributions.
This year, more than three-quarters of a million hospitality employees will have been shunted into employers’ NIC for the first time.
