Search Share Prices
Casual dining holds up in 2017 but faces tough 2018 outlook
Many casual dining brands saw significant growth on the high street last year despite recent high-profile closures and concerns that market saturation and other factors could damage the industry.
The latest edition of the market growth monitor revealed that despite an overall small dip in licensed premises across 2017, overall restaurant numbers grew by 0.6% over the course of the year with Britain now home to 16.7% more restaurants than in December 2012.
However, data and research consultancy CGA's recently-published 2018 business leaders' survey indicates that many restaurant businesses may scale back operations due to concerns surrounding rising property costs, market saturation and food costs.
Established brands such as Prezzo, Byron Hamburgers and Jamie's Italian have already announced closures in 2018, with creditors voting in favour of company voluntary agreements at the latter two companies.
CGA vice president Peter Martin said: "2018 is shaping up into a tough year for pub, bar and restaurant operators, and CGA's Business Leaders' Survey suggests we may not have seen the last of closures from some of our biggest casual dining brands."
Overall Britain saw a drop in licensed premises of just 0.3% over the course of 2017 despite mounting pressure, low market confidence and the ever-looming uncertainty of Brexit.
The majority of closures of licensed premises in 2017 were from drinks focused establishments such as pubs and bars.
"Our latest Market Growth Monitor is a reminder of the underlying strength of the sector despite the perfect storm of challenges that has been whipped up. People are still going out to eat and drink, and operators who can deliver value for experience and select the right locations for their new openings can still thrive," said Martin.