Canalside restaurant in Kilsyth closes as sector struggles
The failure of the Boathouse is being blamed on rising costs and home delivery of takeaways
36 workers are losing their jobs with the closure of the Boathouse Restaurant in Kilsyth which has gone into liqiudation 10 years after it opened at Auchinstarry Marina.
It's being seen as another sign of how the casual dining sector is struggling with 76 restaurants closing across Scotland in the first half of this year, which is more than in the whole of 2017.
Eileen Blackburn, head of Restructuring and Debt Advisory at French Duncan, who have been appointed liquidators of the Boathouse commented: “The closure of the Boathouse is indicative of wider financial difficulties facing the casual dining sector which is currently encountering unprecedented issues which are resulting in failure for a growing number of operators.”
“Far more restaurants close without entering into a formal insolvency process so the numbers struggling financially on a day to day basis will be much larger than the official numbers indicate. Operating a restaurant profitably has always been difficult but there are growing complications from rising rents and rates, increased staff costs, and higher supply costs.”
“The sector has an issue with over-capacity, with rising costs and issues over some operators using outmoded business models. Many restaurants compensate for lower customer numbers by using discount vouchers which can work in the short term but may, ultimately, lead to a vicious circle of voucher dependence, lower income, and reduced profitability and, ultimately, closure.”
“The growth of delivery services has opened an enormous new market from food outlets that never delivered before giving consumers the option of saving some money by eating takeaways at home. Equally the pub food market continues to grow both in the form of successful chains and individual outlets allowing for an evening out at less cost than most restaurants can manage.