Last year saw a 49 per cent increase in the amount of money restaurant directors injected into their businesses to keep them afloat.
The amount in 2017 rose to £192 million, up from £129 million the year before and more than double that of 2012/13.
The news comes as several high-profile restaurant chains announce plans to close branches in order to service its debts, including Jamie’s Italian, which has closed 12 branches, Strada, which is closing 11 branches, and Byron, the burger restaurant, which could close up to a third of its 97 branches.
According to the research, the majority of loans are from directors running small and medium sized restaurants, who can often struggle to access traditional bank lending.
“It is crucial that directors and owners of businesses that struggle to access bank lending are aware of alternative funding options available to them – instead of having to put their own hard-earned cash back into their businesses,” a spokesperson says.
At Beavis Morgan, we have extensive experience of working with clients in the hospitality sector and our professionals are acknowledged experts in issues affecting restaurant owners.
Through our partner businesses, BM Structured Finance and BM Advisory, we are able to help with sourcing and restructuring debt finance for SME businesses, as well as assisting with resolving issues which can impact on business performance and success, and finding innovative solutions for businesses and individuals in distress.