May 5 (Bloomberg) -- U.S. restaurants are four times more likely to fail than they were a year ago and as many as 40 percent may face a “severe” cash shortage within the next 12 months, restructuring firm AlixPartners LLP said.

The increased risk may spur liquidations, restructuring, bankruptcies and buyouts, according to a survey of 110 restaurant chains. Debt-to-equity ratios have more than doubled in the past two years, hurt by falling asset and share values.

Casual and fine dining restaurants, which have seen fewer visits from consumers who are trimming spending amid the financial crisis, are more vulnerable than fast-food chains, said Andy Eversbusch, managing director and chief of the restaurant practice at Southfield, Michigan-based AlixPartners.

“Consumers are resetting their habits and reducing their casual dining outings overall,” Eversbusch said in a May 1 interview.

Among the 1,000 consumers surveyed, 48 percent plan to eat out less often this year, and 51 percent expect to spend an average of $10 or less when they do. Eversbusch declined to name specific companies that are among the most vulnerable.

Fast-food chains and eateries that bridge the gap between counter-service fast food and sit-down service are more likely to survive the decline, as eaters seek cheaper foods on par with casual dining locations, he said.

Tighter lending restrictions have made it harder for restaurant owners to refinance debt.

Debt-to-equity ratios among restaurant companies have climbed to 1.38, from 0.68 in 2006, while cash levels have declined an average of 6.5 percent in the past five years, the report found.

Aggressive cost-cutting, including renegotiating food and commodity costs with suppliers as prices fall, may give restaurants some breathing room, Eversbusch said. In addition, wrangling lower lease rates with landlords and trimming kitchen staff may help, he said.

Restaurants should “squeeze costs out everywhere so they don’t end up with their backs against the wall,” he said. “I don’t think there’s any recovery in this industry coming soon.”

To contact the reporter on this story: Courtney Dentch in New York at cdentch1@bloomberg.net.

Last Updated: May 5, 2009 08:00 EDT