More restaurant groups will collapse, but smaller operators seizing opportunities

26 July 2018 by
More restaurant groups will collapse, but smaller operators seizing opportunities

At least two or three more restaurant groups will collapse before the end of the year, Christie & Co has warned in its half-year review.

However despite this prediction, the business property advisor has revealed statistics showing small restaurant groups expanded by almost 20% in the last year.

Christie & Co has said that larger operators exposed in high streets and retail parks will face several years of pain, but smaller groups can be optimistic about the emergence of new deals and concepts.

Christie & Co said: "Smaller, nimble operators have emerged as a key player this year, remaining focused on their food offering and providing a great experience, while landlords have started to relax on covenant strength, levels of deposit and rent-free periods.

"Operators, such as Loungers, have jumped on the opportunity to add one or two sites to their collections, which otherwise might not have become available. In many cases, these additional sites are not branded as such, as operators realise that the ‘cookie cutter' approach is out of favour with diners who are seeking new and interesting eateries."

At the end of 2017, Christie & Co had reported that established brands were suffering as consumers increasingly shifted towards innovative experiences.

Some larger operators including Nando's and Wagamama have so far seemed to be resilient, while small brands such as Honest Burger and Giggling Squid have continued their expansion plans.

Christie & Co also predicted that technology, particularly the home delivery services and apps, would become increasingly important.

After a calamitous start to 2018 can casual dining rise again?>>

Cau branches closed with immediate effect by Gaucho Group administrators>>

Restaurant insolvencies increased by 20% in 2017>>

Get The Caterer every week on your smartphone, tablet, or even in good old-fashioned hard copy (or all three!).

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking