The cost of living crisis is leading to the collapse of an increasing number of businesses, according to BWA Insolvency.
Business insolvencies are up 20 per cent in the last quarter, compared to the same time last year.
The Restaurant Association is warning that other businesses may soon follow suit.
A survey found 35% of respondents said "managing the customer downturn" is the major issue, and 20% said managing labour costs are a significant concern.
BWA Insolvency managing director Bryan Williams says he is receiving a rapidly rising number of queries.
"There's an increase in cost, which everyone is bearing; a shortage of skills, which has also impacted on import cost; and there's a major drop-down on demand," he explained.
Restaurant Association general manager Nicola Waldron says pressures in the industry are at play.
"Hospitality is a discretionary spend for people and so when times are a little bit tight, then they really have to consider where they're spending," she said.
Even the craft beer industry has taken a hit, with major breweries Epic Brewery, Brothers Beer and Deep Creek Brewing striking financial turbulence.
A particular pinch is the rising excise tax, and a 200-300% rise in the cost of CO2.
"We're starting to see people not being able to manage their cashflow and manage their businesses enough to be able to sustain a really strong, viable business," Good George Brewing founder Brian Watson said.
"We're all worried about the jobs that they're going to potentially lose and people's livelihoods."
More businesses are expected to close in the coming months but for some, there is hope at a path forward.
Luis Cabrera hung up his apron after the financial stress of the Covid-19 pandemic closed his restaurants, but he now sells premium margaritas all around the world.
"Has a lot of love – believe me," he said.
The recipe for his award-winning Besos Margarita took two years to perfect, during which he "had a lot of fun drinking tequila".
Cabrera said while he began doubting his abilities, he said it's important to "simplify" and "focus on what you do well" to make it out on the other side.
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