Restaurant industry turnover up 39 per cent since 2010
The UK restaurant sector has boomed with turnover reaching £21 billion, a 39 per cent increase since 2010.
Britain’s restaurants continued to cater to the public and saw business positively boom in the years since 2010, despite the economic downturn. Turnover in the dining out industry reached £21.6 billion in 2014, an increase of 39 per cent from the £15.5 billion recorded in 2010, according to data from Companies House analysed by finance company LDF.
An analysis of 52,000 restaurant business accounts showed that people continued to dine out and likely cut back expenses in other areas. Now, since wage growth has started to outstrip increases in inflation, restaurants are enjoying a further boost to business as consumers generally have more disposable income.
“There is generally more money available for people to spend. There’s a feelgood factor in certain parts of the country,” said Peter Alderson, managing director of LDF.
The figures add up
The latest economic figures also back up the claims. Unemployment in the UK fell to a seven-year low (Britain now has the second-lowest unemployment rate in the European Union), average weekly earnings rose to its highest rate in four years, and inflation languishes at zero per cent.
“With consumer price inflation stuck at zero, workers are experiencing solid real pay rises for the first time since the recession,” said PwC chief economist John Hawksworth.
Meanwhile, consumers are set to see the disposable income rise at rates not seen in over 20 years. According to a survey of 2,000 households by the EY Item Club, growth in household’s spending power will surge by 3.7 per cent in 2015.
The think tank noted that as the consumer recovery continues to flourish, businesses should set themselves up to capitalise on the rising spending.
In fact, it seems that many smaller firms and startups are way ahead of the curve, as finance provider LDF said the growth in restaurant turnover was driven in part by the expansion of fast-casual chains - restaurants that offer both fast-food like speed and a quality sit-down dining experience.
“The restaurant industry is seeing a huge increase in demand for funding as it continues to benefit from the knock on effect of the economic recovery and low inflation,” said Mr Alderson.
It’s not just London that’s benefitting either, as Mr Alderson pointed out that cities in the North are seeing people choose eating out as an essential part of their lifestyle. Manchester, Liverpool, Leeds and Sheffield have all seen a number of fast-casual chains take root and compete for space, but it remains to be seen how long they can stay competitive for.