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Today’s company insolvency statistics show accommodation and food services insolvencies were down 12% year-on-year from 313 (April 2024) to 275 (April 2025), and fell 2.5% month-on-month.
Insolvencies in the sector also decreased 12% from 3,824 in the 12 months to April 2024 to 3,369 in the 12 months to April 2025.
April was a strong month for the hospitality industry, with the sunny weather boosting operators’ top line which translated into fewer insolvencies.
But looking ahead, May’s data paints a different picture, with sales slipping 1.0% year-on-year according to the CGA RSM Hospitality Business Tracker. This downturn in trade combined with inflationary pressures and global uncertainty means we could see a return to higher levels of insolvencies in the coming months.
“Restaurant inflation ticked up slightly to 4.0% year-on-year in May, which is likely to be driven by operators passing on higher costs to consumers. However, the risk of putting prices up too much is that it could cause consumers to cut back spending, which could be detrimental to the sector during this crucial summer trading period.
“With consumer confidence continuing to improve and hotter weather in June, it’s hoped we’ll start to see this translate into more spending. The concern will be if inflation persists in areas that directly hits household budgets, this may delay any meaningful recovery in consumer confidence and future spend on eating and drinking out.”
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