CreditorWatch’s recent Business Performance Report reveals troubling trends for the hospitality sector, with 16.2% of businesses rated as high risk and a projected closure rate of 8.9% over the next 12 months.

Key Challenges

The hospitality industry is currently facing several significant challenges, including:

• Higher Interest Rates: Increased borrowing costs strain finances.
• Rising Input Costs: Supply costs are impacting profit margins.
• Energy Price Hikes: Operational expenses are rising.
• Reduced Foot Traffic: Fewer visitors to CBD locations are hurting revenue.
• Lower Consumer Demand: Cost-of-living pressures are leading consumers to cut back on discretionary spending.

CreditorWatch’s CEO Patrick Coghlan emphasises that improvements in the hospitality sector won’t occur until consumers feel relief from cost-of-living pressures.

CreditorWatch predicts that Food and Beverage sector will face the highest closure rates in the coming year, reflecting the ongoing impact of tighter monetary policies.

Call David Levi on 0418 602 466 if you are in need of restructuring.