Published: 2024-02-13 by, News Team in the National news category

Local Restaurants Face Shocking Surge in Closures Amid National Turmoil

In recent weeks, Newcastle has seen a worrying trend as many local restaurants have had to close down. This reflects a wider problem across the hospitality industry this year, facing its toughest challenges yet.

New data shows a big increase in restaurant closures, the highest in ten years. Over the last 12 months, 569 restaurants have gone out of business, that's about 5.6 closures every day. This is 55% more than in 2021, showing just how tough things have become for restaurants.

Restaurant owners are feeling the pressure from different directions. With interest rates going up, it's harder for restaurants with a lot of loans to keep up with repayments. Banks are also being stricter about giving out loans, making it even tougher for struggling businesses. Plus, with people eating out less, restaurants are making less money, which makes things even harder.

But there are some positive signs. Despite all the closures, a third of restaurants are actually making more money, showing how resilient they can be. Still, it's a tough road ahead, especially for places with a lot of debt.

Even big restaurant chains, like The Restaurant Group, are feeling the pinch. They're closing down some of their restaurants too, showing how widespread the problem is.

In the face of all this, Newcastle and other places remind us how tough but important it is to support local restaurants. As communities come together to help out, there's hope for better days ahead. It's a good reminder of why it's vital to support local businesses, especially during tough times like these.

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