New research undertaken by chartered accounting firm Wilkins Kennedy has reported a 31 per cent increase in restaurant insolvencies during the last quarter of 2011.

According to the figures, nearly 200 restaurant businesses collapsed during the three-month period, the largest number in any quarter since Q1 2009 at the start of the last recession.

Ongoing economic concerns forcing down discretionary spending has been cited among the reasons for the sector's struggles, as well as increases in VAT and the minimum wage.

Wilkins Kennedy partner Anthony Cork said: "It is the proverbial perfect storm but the sheer number of restaurant groups that have been sunk by it is still surprising.

"When income is falling businesses can normally bail themselves out by cost cutting - but restaurants have a very high percentage of their costs fixed by the property leases that they have to sign with their landlords."

Details: www.wilkinskennedy.com