The number of restaurants going bust in 2018 across Scotland was the worst on record, analysts have found.

Restaurant failures rose from 73 in 2017 to 136 in 2018, up 86.3%, according to analysis of official Insolvency Service statistics by accountants and business advisers French Duncan LLP.

They accounted for 13.9% of all corporate failures in Scotland last year.

The analysts suggested high street struggles such as the cost of business rates and problems with landlords were behind the rise.

Prezzo, Byron and Carluccio’s were among the high street restaurant chains to close some outlets in Scotland last year.

French Duncan highlighted the boom in delivery services and a possible vicious circle created by “dependence” on discount vouchers leading to some restaurant closures.

It also warned the true number of restaurant closures is likely to be higher as more will have gone bust without entering into a formal insolvency process.

Eileen Blackburn, head of restructuring and debt advisory at French Duncan, said: “These figures once again highlight the difficulties the restaurant sector is facing.

“A near doubling of the number of restaurant failures in one year is a quite alarming reflection of the state of the sector.

“This is undoubtedly due to the continuing problems faced by the high street which has seen restaurants and retailers hit badly over the last year.

“The issues facing the high street continue with high business rates and inflexible landlords contributing greatly to the problem.

“Local councils and landlords must accept that they cannot continue to milk high street businesses for cash as too often the result are more closures and more boarded-up outlets.”

Prezzo Restaurant
Prezzo was one of the restaurant chains to close outlets in Scotland (Stephen Kelly/PA)

She added: “There is also an issue with over-capacity in the sector, and rising costs have resulted in many restaurants simply being unable to continue to operate.

“Some Scottish operators may also be operating on a model that is now outmoded.

“The discount voucher market which can be a useful tool in the short term also lowers revenue as consumers shop around for the next deal.

“Vouchers can lead to a vicious circle of voucher dependence, lower income and reduced profitability and, ultimately, closure.

“Many restaurants are also being hit by the growth of delivery services, which has opened up an enormous new market from food outlets that never delivered before, giving consumers the option of saving some money by eating takeaways at home.”

She warned the figures “may only be the beginning of continued difficulties for the sector in the coming years”.