New report forecasts 'modest growth' in UK restaurant sector
Research undertaken by Lumina Intelligence suggests that the UK restaurant market will grow by 1.3% in 2024, reaching a total value of £19.0 billion.
However, the study also revealed that any expansion will be overshadowed by inflation and growth in the broader eating-out market, which is projected to rise by 2.6%.
Meanwhile, spiralling costs, expensive debt and a challenging macroeconomic environment continue to put immense pressures on businesses nationwide.
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The report stated: “The total market is expected to see a net closure of six restaurants every week in 2024, leading to a -1.2% decline in outlets, with the total number falling to 26,566 sites. Rising business rates and staff costs are contributing to this trend, with closures predicted to continue through 2025-2027 as many sites become financially unviable.”
Yet there is evidence that “consumers are increasingly choosing restaurants for weekend lunches, trading up from retail and pubs” according to Lumina's research.
“Consumer preferences are increasingly focused on quality dining, global cuisines, and strong value propositions, creating opportunities for businesses that can adapt to these trends,” the report noted.
Insight lead, Katie Gallagher, commented: “The UK restaurant market continues to face significant headwinds, with rising costs creating tough conditions, particularly for independents. But there are opportunities for operators that can harness consumer trends, innovate, and deliver strong value propositions.”
The report can be accessed here.
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