With Byron Hamburgers announcing that it could close more than a dozen restaurants if a Company Voluntary Arrangement (CVA) restructuring plan is approved, and news that Tasty, which operates the Wildwood and Dim T brands, will be disposing of sites due to the “difficult trading environment” the hospitality sector is set for a tough 2018.
The rising cost of property, tax, employees and raw materials is putting pressure on the industry, which is already struggling due to a significant decline in like-for-like sales in the past year.
Commenting on the industry, Non-Executive Chairman of Tasty, Keith Lassman, says: “The sector as a whole has been suffering due to a slowdown in consumer spending since the beginning of 2017 and this is set to continue into 2018. This is not unique to the group or any particular area but appears to be a nationwide problem particularly evident in London and has impacted turnover and profit.”
At Beavis Morgan, we have extensive experience of working with clients in the hospitality sector and our professionals are acknowledged experts in issues affecting pubs, bars and restaurants.
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.
Contact Matthew Burge or your usual Beavis Morgan Partner for further information about how we can assist you and your hospitality business.
Further reading: Adaptability is “the new competitive advantage” for hospitality businesses