Hospitality insolvencies down by 12% in April

Higher levels of insolvencies may return due to a downturn in trade.

Accommodation and food services insolvencies decreased by 12% year-on-year to 275 in April and fell 2.5% month-on-month.

On an annual basis, sector insolvencies declined by 12% to 3,369 in the 12 months to April 2025, from 3,824 in the 12 months to April 2024.

“But looking ahead, May’s data paints a different picture, with sales slipping 1% year-on-year according to the CGA RSM Hospitality Business Tracker,” Saxon Moseley, partner and head of leisure and hospitality at RSM UK.

Moseley noted that the drop in trade, combined with inflationary pressures and global uncertainty, could lead to an increase in business 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,” Moseley said.

“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,” he added.