The scarcity of new opportunities forced acquisitive restaurant operators to widen their search for new sites in 2012, but high streets are definitely losing their appeal – according to Christie + Co’s Business Outlook 2013.
Despite falling high street rents, the leading operators are clearly deterred by the number of retail business failures and the volume of vacant space, though average sale prices for UK restaurants declined by a marginal 1.4 per cent.
However, consumer appetite for eating out in 2012 remained undimmed, according to Simon Chaplin, Director and Head of Restaurants at Christie + Co., who says:
“Despite spending cutbacks and dips in retail sales, UK consumers have consciously chosen not to curb their eating out. Our enthusiasm for visiting pubs, restaurants and takeaways hasn’t diminished – in fact there’s plenty of evidence to suggest that the average number of dining experiences enjoyed outside the home will grow over the coming months.
“Dining outside the home is no longer prompted by special occasions, or the need to socialise – it is driven by our hectic lifestyles. A large number of UK consumers simply don’t have the desire, or the expertise, to prepare a meal from scratch – we eat out because it’s quick, convenient and affordable. Eating out has become a habit, if not a necessity.”
Moreover, consumers’ desire for convenience, speed of service and value is evident from their choice of venues:
“The quick service sector, which features brands such as McDonald’s, KFC and Domino’s Pizza, is the segment that offers the cheapest meals and unsurprisingly continues to grow.”
Regional groups and individual restaurateurs step in
While major operators were reluctant to acquire many sites outside London during 2012, regional groups and individual restaurateurs were happy to step in. Sales completed by Christie + Co’s local offices confirmed that there were still buyers out there. Restaurateurs with the experience, local knowledge and ability to cater for value-conscious consumers, are able to build a loyal customer base and run successful operations.
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