UK Casual Dining Market 2018 – Challenges and Opportunities

The UK casual dining market 2018 has seen a dramatic shift, despite what initially appeared to be a positive year. Dubbed the Year of the Dog, 2018 promised luck, fortune, and opportunity. Early highlights reinforced this optimism, from the widely praised Winter Olympics in Pyeongchang to major royal celebrations in the UK.

However, beneath this positive outlook, the restaurant sector has faced significant challenges. In fact, 2018 has not been the year of the restaurant. A wave of closures and restructuring has affected well-known casual dining brands. Chains such as Byron, Jamie’s Italian, Prezzo, and Strada have all faced financial pressure, with Company Voluntary Arrangements (CVAs) and site closures becoming increasingly common.

So, what has caused this downturn in the UK casual dining market 2018? A combination of rising costs and changing consumer behaviour has created a perfect storm. Increasing staff wages, higher food costs, and rising rents and business rates have placed significant pressure on operators. At the same time, consumer confidence and disposable income have declined, partly influenced by wider economic uncertainty.

Furthermore, the sector has experienced rapid expansion over the past two decades. During the 2000s and early 2010s, many restaurant chains grew aggressively, often supported by cheap debt and private equity investment. Brands such as PizzaExpress, Nando’s, and Zizzi expanded rapidly, while newer entrants like Franco Manca and Honest Burgers added further competition. As a result, the market became oversaturated.

Consumers now have more choice than ever before. However, they are dining out less frequently. Therefore, increased competition combined with fewer customers has created a challenging trading environment. Simply put, higher costs, more competition, and reduced demand have formed a difficult formula for success.

In addition, changing consumer expectations play a key role. Diners now seek unique and high-quality experiences. As a result, outdated or uninspiring concepts struggle to survive. Much like Darwin’s theory of natural selection, only the strongest and most innovative brands will continue to thrive.

Despite these challenges, opportunities remain. For every failing concept, a new and innovative one emerges. This is particularly evident in London, where demand for well-located restaurant space continues. The restaurant team at Kinney Green works with a wide range of A3, A4, and A5 occupiers actively seeking new opportunities.

Kinney Green is currently marketing several retail and leisure units, including a standout former banking hall located just three minutes from Bank in the City of London. This prime site offers approximately 8,600 sq ft of restaurant space and represents a significant opportunity for the right operator.

Overall, the UK casual dining market 2018 reflects both challenge and change. While some operators struggle, others adapt and succeed. The sector continues to evolve, driven by innovation, consumer demand, and economic conditions.

Kinney Green advises on all aspects of retail and leisure property, including rent reviews, lease renewals, acquisitions, and disposals.

For further information, please contact:
Neil Warwick
DDI: 020 7643 1531