By Daniel Hunter
The latest PwC analysis of corporate insolvency numbers, shows that Hospitality and Leisure (H&L) insolvencies are down on the same period last year. In fact, H&L insolvencies have continued to fall quarter on quarter for the past year and are now at their lowest point since Q4 2010.
In total, there were 1,794 insolvencies in the H&L sector in the past 12 months compared to 1,816 in the same period the year before. H&L insolvencies in Q1 2013 were down 10% on Q4 2012 and were down by 27% compared to the same quarter last year.
The biggest drop between Q4 2012 and Q1 2013 was seen in restaurants, which saw a 13% fall.
David Chubb, PwC business recovery partner and hospitality and leisure specialist, commented:
"With the fact that H&L insolvencies have continued to fall quarter on quarter for the past year and are now at their lowest point since Q4 2010, perhaps this is a sign that the remaining businesses have adapted to the current economic conditions in order to ensure their survival.
"Restaurants have had a good quarter but I think it is difficult to read too much into this quarter of results. It may be that consumers are getting used to the new normal and certainly the culture of eating out now seems built into the UK consumer psyche.
"The challenge restaurants have going forward is how to pass on increasing food prices to the customer, especially as recessionary behaviours are now the norm and the focus on buying clever/ dining out clever has certainly stuck with the consumer."
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