Propel Morning Briefing Mast Head Propel Hospitaliity website Paul's Twitter Link Subscribe Unsubscribe Web Version Forward Email Swifty Banner Morning Briefing Strap Line
Fri 17th Mar 2017 - Branded food-led pubs and restaurants continue to grow despite fierce headwinds, overall numbers down 1.3%
Branded food-led pubs and restaurants continue to grow despite fierce headwinds, overall numbers down 1.3%: Numbers of branded food pubs and restaurants have continued to grow despite fierce headwinds, the latest Market Growth Monitor from AlixPartners and CGA Peach has revealed. It showed casual dining operators had another strong year of growth in 2016 – and by the end of December the country had 20.9% more restaurants than it did at the end of 2011. The number of branded food pubs also expanded significantly, as major pub groups continued programmes to turn flagging drinking pubs into destination food-led ones. The AlixPartners CGA Peach Market Growth Monitor confirmed ambitious food-focused businesses remain firmly in expansion mode. It follows figures from the latest Coffer Peach Business Tracker showing like-for-like sales growth of 1.7% for managed pub and restaurant groups in February 2017, building on modest but consistent increases through 2016. The upbeat news comes amid mounting challenges to the eating and drinking-out sector. Rising rates, food costs and wage bills are all increasing the pressure on businesses at the moment, exacerbated by uncertainty around the effect of Brexit on staffing and exchange rates. The success of branded pub and restaurant sectors contrasts with evidence from the Market Growth Monitor of a small decline of 1.3% in Britain’s overall number of licensed premises last year – equivalent to 1,600 net closures. Drink-led local pubs and independent restaurants accounted for the bulk of that figure. The Monitor uncovered many notable bright spots in the eating-out market, including the suburbs, where the number of food-led licensed premises increased by 1.2% in 2016, and the north east, where they rose 3.8%. Regional cities also continue to be a key focus for expanding operators, with the number of licensed premises in British cities up by 7.6% in the past five years. CGA Peach vice-president Peter Martin said: “Restaurants and pubs face significant cost challenges at the moment, many of them not of their own making. So it is no surprise to find the licensed sector contracted slightly in 2016 – but that should not distract from the success of food-led operations in recent years. It is a story of dynamic economic growth and job creation that deserves more recognition and support from government.” AlixPartners managing director Paul Hemming added: “We are continuing to see strong trading performances from many companies in the branded casual dining sector, especially those who have had the resources to invest in their sites over recent years. Sales for these operators have been positive in the early part of 2017, but this benefit has been offset by strong cost pressures. The drivers for like-for-like sales growth now include price rises, which operators are introducing as they juggle the complex interplay of pricing versus covers. Menu engineering is also at the forefront as operators look to drive efficiency to maintain or improve profitability. The pressure on independent operators and smaller groups is intense. Faced with fewer cost-saving options, less operational experience and cash constraints, the future looks tough. Despite this, new offerings are coming to the market and investor appetite for four to five-site businesses remains strong, as the recent Piper investment in Flat Iron confirms. The growth of food-led pubs in itself is unsurprising but the speed of this growth should send a further warning to the restaurant market. The public still has an affinity with the pub and many of the new offerings deliver great value for money and good food. The sector is clearly not for the faint-hearted but this type of environment simply drives a more marked divide between the winners and losers.”


Return to Archive Click Here to Return to the Archive Listing
 
Punch Taverns Link
Return to Archive Click Here to Return to the Archive Listing
Propel Premium
 
McCain Banner
 
Zapaygo Banner
 
Matthew Clark Banner
 
Deliverect Banner
 
A2Z Masks Banner
 
Pub Plants Banner
 
Yoello Banner
 
Ei Group Banner
 
OrderPay Banner
 
TipJar Banner
 
Trail Banner
 
Odamo Banner
 
Arla Foods Banner
 
Nestle Waters Banner
 
Yumpingo Banner
 
Camile Banner
 
Pepper Banner
 
The Leisure and Hospitality Collective Banner
 
LunchMate Banner
 
Biff's Banner
 
Zonal Banner
 
Swifty Banner
 
Yudu Banner
 
Orderbee Banner
 
Startle Banner
 
Pago Banner
 
Access Banner
 
Ten Kites Banner
 
Prestige Purchasing Banner
 
IOL Banner
 
COREcruitment Banner
 
Punch Taverns Link Punch Taverns Link
Wi5 Banner
ALMR Web Link Web Version Unsubscribe Subscribe Propel Info website