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'Many pubs and eateries in trouble'

Oct 1 2012

 

A third of restaurants and a quarter of pubs risk going bust within the next 12 months, according to research.

A total of 625 restaurants (33.8%) and 288 pubs (26.7%) in Scotland may face closure in the coming year as the economic crisis shows little sign of improving, said insolvency trade body R3.

Analysis shows that 103 restaurant businesses and 63 pubs are at a high risk of failure as diners and drinkers tighten their budgets.

John Hall, Scottish R3 council member, said: "These figures are shocking but perhaps not surprising.

"We have already seen that the retail and hotel sectors are vulnerable, so it is to be expected that other areas of discretionary spending such as restaurants and pubs will be susceptible to the continuing economic downturn and lack of confidence among Scottish consumers."

Customers are worried about the security of their jobs, homes and pensions, which has discouraged non-essential spending, Mr Hall said.

"Unfortunately there is little sign that the current economic situation is improving. Some forecasters are predicting another five years of similar economic performance before we finally shrug off the gloom of the 2008 recession.

"Whether this is the case or not, it is likely that many more businesses reliant on discretionary spending will continue to experience difficult trading conditions for the foreseeable future."

 

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