Profits of top 100 UK restaurant groups drop by 80% this year, UHY Hacker Young Group says
They warned that struggling groups will see worse before it gets better.
Pre-tax profits of the top 100 restaurant groups crashed from £194 million to £37 million or equivalent to 80% this year, according to a study by UHY Hacker Young Group.
This year have seen reportson store closures and business restructuring which includes groups such as Gaucho, Strada, and Prezzo.
They also mentioned that 37 of the said 100 groups are now loss-making. One of them is Gourmet Burger Kitchen who had reported £2.6 million operating loss and has recently entered voluntary administration.
“Despite the long-term benefits, closing down restaurants is often hugely expensive in the short-term. For some struggling restaurant groups that means things will get worse before they get better,” Peter Kubik, insolvency partner of UHY Hacker Young, said.
“However, relative success stories such as Wagamama, which opened seven new UK restaurants this year, show that consumer demand for casual dining is still present. Similarly, ethically-sourced fast food chain Leon is expanding into Europe. The restaurants that are doing better are those who are innovating by offering their customers something more unique.”
