16/05/2023 08:56:00
Rising interest rates could "significantly impact business viability", trade body UKHospitality (UKH) has warned. Last Thursday (11 May), the Bank of England increased base interest rates by 0.25 percentage points to 4.5% in a bid to meet inflation targets, reportedly the highest level for almost 15 years, reports Morning Advertiser. UKH chief executive Kate Nicholls said: "Interest rates reaching [these] levels will be a huge worry for hospitality businesses and could significantly impact business viability. Hospitality was the business sector most affected by the pandemic, with a large number of businesses forced to take out loans to survive. With those loans now due, consistently rising interest rates compound debt and inflict further economic pain on venues."
Rosa's Thai has secured £10m funding from Barclays bank as it seeks to bolster its openings pipeline. The Caterer reports that it comes after global private equity firm TriSpan acquired a majority stake in the restaurant group in June 2018. Rosa's Thai, which is led by chief executive Gavin Adair, now operates 33 restaurants across England and Wales. The business opened its first overseas site in Dubai last October. It has also confirmed UK openings in Oxford, Glasgow, Reading and has scheduled its Leamington Spa launch for this summer. The £10m bank facility will be used to fund further restaurant openings.
Pub chain JD Wetherspoon is on course for a record year, the company has said, after its sales in Easter week were the highest they have ever been. Sales in the current financial year are likely to reach record levels, Wetherspoons said in its third-quarter trading update. Strong sales came thanks to the two recent bank holidays advises Sky News. The May bank holiday was "exceptionally strong" and on 29 April the chain reported its busiest-ever Saturday.
Company insolvencies in hospitality could hit record highs this year, a legal expert has warned, as business continue to be battered by a 'perfect storm' of cost pressures. Restaurant reports that according to figures provided by law firms Higgs LLP, a total of 249 hospitality companies entered insolvency in February this year - up from 175 in February 2022. "Company insolvencies are at record levels across the board and unfortunately hospitality is high on the list," says Lauren Hartigan-Pritchard, head of restructuring and insolvency at Higgs LLP. "The circumstances for the rise in insolvencies varies sector-by-sector as each industry has its own challenges. We are witnessing a perfect storm of events that is making life very difficult for many businesses right across the country. Unless the economic picture improves, high levels of business failures are guaranteed."
Mitchells & Butlers has unveiled a season of celebration created to commemorate 125 years of serving guests. A range of activities have been planned to reflect the milestones of the business since its formation in 1898, when two Midlands family brewers joined forces, reports Pub & Bar.