Gambit announces the publication of its Hospitality UK Market Review - March 2020.
- Despite the industry experiencing ongoing headwinds in the form of Brexit, coronavirus and mounting cost pressures, the sector remains resilient. Underlying trends are still spurring growth, with consumers dining out more and using restaurants as a place to socialise.
- Over recent years, the industry has seen the rise of quick service restaurants (QSR) which have been less vulnerable to the supply side pressures as opposed to the casual dining sub-sector. This is derived from the lower operating costs of these establishments and favourable consumer trends.
- Despite the perception of the casual dining sector being under pressure, the industry has experienced consistent growth between 2014-2019. Casual dining has experienced an oversupply of traditional chain restaurants which has led to a number of high profile closures. Nevertheless, operators that are able to distinguish themselves in the market are still an attractive option for investment.
- Millennials and Generation Z have emerged as the largest consumer base, which has led to many restaurant establishments adapting their existing business models to cater for these generations. This includes utilising social media as a marketing tool and adopting technological innovations to improve the customer experience for the tech native generations.
- Food delivery services have surged in popularity as consumers have less time to cook and delivery options have expanded outside the traditional offerings.
- Meat consumption among UK consumers has fallen considerably as the public adopts new dietary trends such as veganism and vegetarianism. This has led to operators expanding their food offering to cater for these new consumers. First mover advantage has been seen in Greggs Plc which experienced a “record year” which it attributes to the popularity of its vegan food options.
To read full report click here.