According to analysis from accountancy firm UHY Hacker Young, losses at the top 100 restaurants increased by 24% from £673m.
Losses have grown as restaurant brands have been forced to carry out restructuring schemes, with some writing off debts through Company Voluntary Arrangements (CVA).
Inflationary pressures have also been weighing on major chains as headwinds have multiplied in recent months.
Peter Kubik, Partner at UHY Hacker Young said: “Losses among the UK’s major restaurant chains have reached enormous proportions. Many of them overextended themselves significantly over recent years, just in time to be hit by Covid and inflation running out of control.
“With economic dark clouds still gathering and the UK facing a cost of living crisis, there are still strong headwinds facing the casual dining sector. Restaurants are likely to be under a lot of pressure for some time yet. However we feel the worst is over.
“While some restaurants have disappeared from high streets altogether, many have managed to save themselves with far-reaching restructuring programmes. While the sector is not out of the woods, the groups that have dropped underperforming branches and shed debt through CVAs are in a better state to compete.”
