Operators scaling back expansion plans as confidence hangs in the balance

28 February 2019 by
Operators scaling back expansion plans as confidence hangs in the balance

Restaurant and pub operators are scaling back expansion plans as market confidence hangs in the balance.

Two thirds of business leaders reported they were optimistic about their own businesses in early 2019, but just 39% were positive about prospects for the market as a whole, according to CGA's 2019 Business Leaders' Survey conducted in partnership with CPL Online.

As a result, just under a quarter (24%) of operators questioned said they planned to open more than five sites this year, compared to 45% in 2016.

Those running drink-led businesses were more optimistic than those leading food-led businesses with 53% feeling positive about the market, compared to 33%.

Phil Tate, group chief executive of CGA, said: "Our Business Leaders' Survey reveals an industry caught between instinctive confidence for growth and caution about the challenges they face. It is encouraging to find that more than two thirds of leaders are optimistic about prospects for 2019 but concerning that far fewer feel upbeat about the market as a whole. We are also seeing a growing divide in confidence levels between pub operators, many of whom enjoyed a good 2018, and the restaurant sector, which endured a tough year.

"With so much talk of market saturation, indications that leaders are reining in their new openings should be little surprise. On top of that, Brexit is casting a long shadow over ambitions. But difficulties for some operators will always create opportunities for others, and leaders of well-defined and customer-focused brands are going into 2019 with grounds for cautious optimism."

Number of casual dining restaurants falls for the first time since 2009>>

Sales slump hits restaurants and pubs across January after Christmas boost>>

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 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.

close

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