Record Restaurant Bankruptcies in March Highlight Industry Struggles

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Record Restaurant Bankruptcies in March Highlight Industry Struggles
Photo: Mickan Mörk/TT

In March, 122 restaurant companies went bankrupt. This is the largest number of restaurant bankruptcies that have been recorded in a single month, according to the industry organization Visita.

The tough economic situation for the restaurant industry is attributed to rising raw material prices, increased rents, and customers holding tighter onto their wallets, writes Visita in a press release.

Several restaurant companies are also burdened by tax debts since the pandemic, which now need to be paid back.

Visita now wants several measures to be taken to strengthen the industry.

"Restoring the reduction of payroll taxes for young people, more individually tailored repayment plans for the debts, and regulatory simplifications such as abolishing the food requirement are some examples," says Thomas Jakobsson, chief economist at Visita according to the press release.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers
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