Two-thirds of UK’s top restaurants in the red after Brexit, covid and inflation: Debt repayments, staff shortages and rising energy bills have pushed almost two-thirds of the UK’s top 100 restaurants into the red, according to research that reveals the impact of the pandemic, Brexit and the cost of living crisis on the hospitality sector. The Guardian reports that with a recession looming and further increases in energy bills weighing on businesses, a separate report found that £700m of business rates relief remains unpaid with only half of English councils paying out the support funds. A record 64% of the biggest restaurant companies are now making a loss, according to the accountancy firm UHY Hacker Young. Several have suffered heavy losses due to major restructuring programmes undertaken following the pandemic, and because of debt repayments, particularly to landlords. The restaurant sector had expected a recovery in profits following the pandemic, but this has been jeopardised by spiralling food inflation and a fall in consumer confidence caused by interest rate rises. Restaurants have also been hit by labour shortages, forcing them to restrict covers and therefore reducing the amount of revenue they are able to generate, especially at peak times. The company said: “It may be a case of ‘out of the frying pan, into the fire’ for many restaurant groups. They expected, and needed, higher consumer spending as we put covid further behind us, but this spending is now likely to fall when it is needed most.” Meanwhile, only about half of councils in England have started making support payments to businesses from a £1.5bn rates relief package announced by the government in March 2021, a freedom of information request made by the property consultancy Gerald Eve has found. It asked all 309 councils in England how much they had paid out to local businesses. Of the 219 who replied, just 58% have started paying out anything, despite a deadline for concluding relief payments coming in less than two months.