A wave of job losses at restaurants is expected in the wake of the coronavirus crisis, a new report warns.
Some firms could also look to close sites and cut menus, with the sector already weakened by worsening losses in recent years.
Losses at the top 100 restaurant groups increased by 94% to £151million last year, research by accountancy group UHY Hacker Young suggests.
It said the trend was expected to continue as restaurants struggle with the difficulties of reopening while meeting social distancing guidelines.
The Government has announced restaurants could be allowed to reopen on July 4, although at a reduced capacity to ensure social distancing.
The measures could reduce the attraction of going to a restaurant, while companies will incur additional costs.
Peter Kubik of UHY Hacker Young said: “The restaurant sector has been put under huge pressure by this crisis and the lockdown.
"The sector really needs the Government to formulate proposals that will help the sector bounce back as quickly as possible.
“Flexibility on social distancing rules will therefore be key in both ensuring customers enjoy their experience and restaurants remain profitable."
The report says a number of restaurants are likely to look at reducing staff numbers, especially once the furlough scheme comes to an end.
Mr Kubik said: “Restaurants face big upcoming bills to deal with the post-lockdown period.
"It is essential they start putting in place cash management measures as soon as possible to ensure they have enough working capital to meet them.”
