Restaurants

Based on the comprehensive dataset provided for the Restaurants sector, we have conducted a rigorous review to analyse the financial settlement habits of 182 organisations. The data reveals a distinct disparity between the arithmetic mean and the median, indicating a significant skew in payment behaviour. Whilst the average payment time stands at 52.9 days, the median is notably lower at 38 days. This divergence is primarily driven by extreme volatility at the tail end of the distribution, evidenced by a substantial standard deviation of 123.9 days. Consequently, analysts must realise that the average figure is heavily influenced by outliers and does not accurately represent the typical experience of a supplier in this sector. The centre of the distribution suggests that a standard payment term of roughly one month to 45 days is the prevailing norm amongst the majority of companies.

A detailed examination of the distribution bands and quartiles allows us to organise the companies into distinct performance tiers. The data indicates that the sector generally favours prompt to moderate settlement terms. Specifically, the 25th percentile sits at 26 days, and the 75th percentile at 46 days, creating a tight interquartile range of just 20 days. This demonstrates that for the middle 50% of the sample, payment practices are relatively predictable. Furthermore, the combined data for the 'Fast' (0-30 days) and 'Moderate' (31-45 days) categories encompasses nearly three-quarters of the entire sample (74.2%). Within this cohort, 30 companies specialise in rapid settlement, clearing invoices in under 20 days, with the fastest payer settling in a remarkable 6 days.

However, risks remain prevalent. Despite the general trend toward reliability, 28.2% of all payments are classified as late. Whilst nearly half of the invoices (48.3%) are paid within a standard 30-day window, a concerning 12.3% of payments drag on beyond 60 days. The data highlights a 'Critical' bracket of 5 companies (2.7%) taking over 90 days to settle debts. Most alarmingly, the dataset contains an extreme outlier taking 1000 days to pay. This severe delinquency explains the massive standard deviation and serves as a warning that whilst most trading partners are reliable, a minority display erratic behaviour that could severely impact a supplier’s cash flow.

Geographically, the sector's financial activity appears to centre heavily around the South of England, with London and the South East accounting for 93 companies—over half of the total sample size. In summary, whilst the Restaurants sector displays a healthy median performance with strong adherence to 30-45 day terms amongst the core majority, suppliers must analyse credit risks carefully. The presence of extreme outliers and a 28.2% late payment rate suggests that credit control teams should not become complacent, particularly when dealing with the minority of entities that deviate from the established standard.