IN ASSOCIATION WITH
Get ready for growth T
he leisure sector has undergone radical change since 2008, witnessed no more so than in the eating out market. Customers have never had it so good. The range of offers on our high street (and online) has evolved rapidly through the downturn in terms of range, value and quality. Competition for the leisure pound has never been greater and successful restaurant operators are adapting to the new environment they find themselves in. Market changes are driven in part by a change in the dynamic of diners. With an
increasingly inquisitive palate and a demand for quality in provenance and service, the patrons who frequent restaurants know what they want and how they want it. What’s more, if they don’t get it they have the ability to tell the world before they even leave the premises. The need to innovate has permeated not only the food and beverage offer but also mid and back office. This comes with a short-term cost and puts pressure on the business model. In addition, an increasingly well trained and professionalised work- force may expect more than the minimum wage to retain and engage them. Like- wise, suppliers faced with increased wage bills and higher compliance costs may seek to pass these on. For the unwary, margins will continue to be squeezed. The arrival of disrupters, both technological and in the offers we see, means that
to grow and thrive restaurant operators must innovate and continue to evolve their brands and how they deliver them. While this brings challenges, it also brings oppor- tunity – who in the UK had heard of crowdfunding 10 years ago? If it had been thought of, there certainly weren’t the technologies to deliver it in the manner we are now seeing. Restaurants face other challenges too, but of the traditional type that have come round with the economic cycle, premium payments from tenants for entry into leases of prime locations are back, business rates are under review, red tape mounts and compliance costs grow.
On the back of these changes and in the context of a more confident economic environment, TLT have partnered with The Caterer to produce this insight report looking at growth in the UK restaurant sector.
As an adviser to restaurants across the UK, we wanted to examine the prospects
and challenges for the sector in the year ahead. Drawing on a survey of restaurateurs’ views, direct conversations with restaurant owners via an industry round table and our own insights, we are confident this report will be a valuable tool for those look- ing to succeed and grow in the year ahead.
Contact Julian Mant, leisure sector team, TLT,
julian.mant@
TLTsolicitors.com
“The arrival of disrupters, both technological and in the offers we see, means that to grow and thrive restaurant operators must innovate and continue to evolve their brands and how they deliver them”
www.thecaterer.com Insight Report | 3
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