We always try our best to keep our ear to the ground and give early warnings to business owners about worrying trends. The one that clearly jumped out for us this week was that scale of rising insolvencies in the restaurant sector over the past year. The warning signs have clearly been there – Jamie Oliver and Byron being high profile examples – but 1 in 4! That is big. If throw the rise of Deliveroo and Uber Eats into the mix alongside economic uncertainty you can see that it all serves up the so called Casual Dining Crunch.
This isn’t new to the sector and we’d know given some of the support we’ve provided to our clients. So what have we learned from this?
Dave Ottley, Managing Director at Balance, explained: “The key is to take a step back and plan the next few months very carefully. Sure, we’re about to enter a busy period in the lead up to Christmas but we also know there could be serious dips either side and HMRC bills to pay. You’ve got one simple question to coldly answer: Have you got enough cash?
The reason we are asking you to answer that question now (apart from it is always a good question to ask) is that money is there to support you, you’ve got flexible and early repayment options on cash flow loans but, please, don’t leave it until it is too late.”
The study was undertaken by PCR, please take a look more detail here.