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29th October 2018

Profits at top UK restaurants down 80%

Written by: Katie Imms
Latest figures today (29 October) reveal that total pre-tax profits at the top 100 UK restaurants are down 80% on 2017 – falling from £194 million to £37 million in the past 12 months.

This comes from accountancy firm UHY Hacker Young, who claim that the fall in profits highlights the “on-going challenges faced by the casual dining sector,” including higher business rates, rising minimum wage and increasing utility costs.

 

Partner Peter Kubik said: “The downward spiral in profits of restaurant groups reflects the severe difficulties that continue to impact the sector.

 

“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.

 

“However, relative success stories show that consumer demand for casual dining is still present. The restaurants that are doing better are those who are innovating by offering their customers something more unique.”