Soaring rates ‘force dozens of restaurants out of business’
SOARING business rates and sky high rents have forced dozens of restaurants to shut in the first half of the year.
In the first six months of 2018, 76 restaurants closed their doors to the public, with the number of yearly closures quadrupling in the last decade.
Business advisers French Duncan yesterday published new analysis showing an ‘alarming’ rate of closures with experts warning business rates, rent and competition are forcing some restaurant owners into insolvency.
The figures show 19 restaurants closed in 2007, but this jumped to 73 in 2017.
Eileen Blackburn, head of restructuring and debt advisory at French Duncan LLP, said: ‘These figures highlight the difficulties that the restaurant sector in general, and specifically in Scotland, is experiencing.
‘That the number of failures has almost quadrupled over the last decade is alarming but that the rate of failure is increasing is extremely worrying.
‘The high street is in trouble and the dining sector is encountering unprecedented issues which are resulting in failure for a growing number of operators.’
Miss Blackburn said that there are a number of issues facing the hospitality industry in Scotland, with restaurants
‘Figures likely to be tip of the iceberg’
being hit by soaring business rates and rent. Firms across the country faced nondomestic rate rises of up to 400 per cent following the first revaluation of rates last year since 2010.
Miss Blackburn said: ‘These figures are likely to be the tip of the iceberg as far as restaurant closures are concerned.’
Scottish Conservative culture spokesman Rachael Hamilton said: Restaurants are an indispensable feature of our towns and cities, and it’s alarming to see so many going out of business.
‘The Nationalists’ anti-business agenda is making life extremely difficult, and everyone will suffer as a consequence.’
The Scottish Daily Mail’s Save the High Streets campaign has urged ministers to ease pressure on struggling firms, with a plea to ministers to help retailers and those in the hospitality sector.
A Scottish Government spokesman said: ‘We are doing all we can to support the Scottish economy, including maintaining a competitive non-domestic rates regime for businesses in Scotland.’