The UK restaurants market grew by 2.1% in 2014, representing the most substantial rate of growth since the recession in 2008/09, according to Restaurants 2015, an update from Key Note.
This further demonstrates the continuing strength of the market, which is gradually recovering from the financial crisis seven years ago. The report however, also suggested that the market is yet to reach its pre-recession size, in terms of both value and volume.
Even now, inflation and the cost of living continue to exceed growth in household disposable income. While Britons are still willing to pay for quality food, consumers simply cannot afford to eat out on a regular basis. The increased affordable of eating out is fuelling the demand for ‘gourmet fast food’ at restaurant chains such as GBK, who exacerbating the competition between more affordable brands such as McDonalds.
Another key trend is the increasingly adventurous eating habits of UK consumers, particularly the younger generation.
Despite witnessing growth of 2.1% in 2014, however, it is important to note that trade conditions remain challenging in the UK restaurants market, especially for small- and medium-sized enterprises (SMEs).