Hospitality & food service insolvencies

Hotels, restaurants, pubs, bars and catering businesses are among the most exposed to UK insolvency. They combine high fixed costs for rent, staff and energy with discretionary customer spending that falls away the moment household budgets tighten.

Margins are thin even in good times, and there is little buffer for a quiet season, an energy bill increase or a rent review. A drop in covers or bookings for even a few months can be enough to exhaust cash, which is why hospitality failures cluster after weak trading periods.