Number of restaurants in Britain fall by 2.8% in Q1: study
Meanwhile, drink-led pubs and bars are performing well.
The number of restaurants in Britain fell by 2.8% in the year to March 2019, according to the Market Growth Monitor from CGA and AlixPartners.
The research companies equate the figure to net closures of 768 restaurants over 12 months, or around 15 a week. It marks a fifth successive quarter of decline in the sector for restaurants.
The majority of closures have been independently-run restaurants, but group restaurants are also in decline by 2.4%, with the pace of closures particularly high in the south of England suggesting that saturation point has been reached in many towns and cities.
Market Growth Monitor reveals a more positive picture for the drink-led pubs and bars sector. Three years ago, the report found that closures in this part of the market were averaging 31 a week, but the rate tumbled to 13 a week in the 12 months to March 2019 as the long-term clear out of unsustainable pubs nears an end.
“The positive take on this clear out is that ambitious and well-resourced operators now have more headroom for growth, and the Market Growth Monitor identifies bright prospects for many groups in the drink-led pub and bar space in particular. Brands that can deliver a compelling premium drinks offer and strike the right balance with food have all to play for in 2019 and beyond. The next 12 to 24 months offer an opportunity for well-funded restaurant groups to expand into prime sites at much reduced costs—and if you can catch the right consumer wave the returns are impressive,” AlixPartners managing director Graeme Smith explained.
All data from the Market Growth Monitor is drawn from CGA’s Outlet Index, a comprehensive and continually updated database of all licensed premises in Britain.
