Nottingham has always been a foodie city and the East Midlands culinary capital continues to draw in diners with a rich and varied menu. Yet as the supply of suitable units tightens, many F&B operators are struggling to secure space that meets their tastes.
Ben Taylor, director at Innes England, says: “Nottingham’s attractive city centre, two universities and vibrant nightlife means it’s always in the top ten target cities for nationals looking to expand. It also boasts a strong community of independent operators. I counted 20 openings in 2016 and a further 10 so far this year.”
Peter Harden, co-founder of the leading UK restaurant guide, Harden’s, agrees: “Nottingham does very well as a restaurant destination. Our latest annual survey identifies 20% more restaurants as being of interest than in the previous year.”
Alongside strong independents, recent newcomers range from national multiples such as MOD Pizza, Red Dog Saloon and The Alchemist to regional brands like MOJO and Moxy Ballroom.
And yet it isn’t an easy market in which to succeed; getting the location right, particularly with strong competition, remains a challenge.
Intu recently introduced the Clocktower dining quarter into its refurbished Victoria Centre. Yet within the Past 12 months, Joe’s Kitchen, Coast to Coast, Stonebaked Pizza and Handmade Burger have all shut up shop.
Lack of footfall
Some of those closures have been the result of group administration or restructuring but a lack of evening footfall may have also played its part.
“Unlike the Cornerhouse, Victoria Centre doesn’t have a cinema or leisure offer to pull people in,” says Christie & Co director Simon Chaplin.
However, intu points to recent openings: Bridgee, Krispy Kreme and the Nottingham Street Food Club and says that there are a further five lettings under offer, with the first expected to be open before Christmas.
Martin Breeden, development director at intu, says: “The whole of Nottingham city centre has been dynamic in the past two years in terms of restaurant openings and we are no different. Some brands have worked, some haven’t, but we have an exceptionally busy spot that will be even stronger once we have converted the current new openings in the pipeline.”
In the meantime, other city centre restaurant pitches with high evening footfall have flourished. Alongside established pitches such as Market Square and King Street, operators are also seeking space in the hip streets of Hockley and the Lace Market, together with affluent suburbs such as West Bridgford.
The likes of MOD Pizza, Five Guys and Bill’s have all committed to the city in the past couple of years, keen to claim their slice of leisure spend.
In June, Brewhouse & Kitchen opened a new pub in Trent Bridge as part of its ambitious expansion drive. Managing director Simon Bunn says: “Nottingham is competitive, but we knew people who trade really well here. It was just a case of waiting for the right type of site to suit our offer.”
London operator Red Dog Saloon also chose the city for its first foray into the provinces and opened a unit in Hockley back in October 2016. Director Harvey Berk says: “We’re right in the heart of Nottingham’s night time economy in an area with a great vibe. Given the competition, it was important we chose the right location.”
Hockley and the Lace Market have always been a breeding ground for independent F&B operators. Surrounded by character buildings, the area has the feel of Manchester’s Northern Quarter or Liverpool’s Bold Street.
Looking at Hockley
Agents say national brands are now gravitating towards this part of the city. Ben Tebbutt, director at Nottingham agent Box Property, says: “We’re talking to around 10 national operators who want to be around Hockley because they prefer that kind of vibrant environment.”
The problem is accommodating that demand. “Operators are all converging on an ever-tighter supply of space,” says FHP director Alan Pearson. ”Independents may take unconventional restaurant units, but national brands seeking 3,500 sq ft floorplates have very few options.”
The result is rising rents. Tebbutt says: “We’ve seen significant rental growth in Hockley. A couple of years ago there was no demand and rents were at £10 to £15 per sq ft. I could see that rising to £30 per sq ft in the next six to 12 months for the right type of space.”
Pho is in the throes of expansion, bringing its Vietnamese food offer to cities across the UK. Head of property Nick Houlton says: “We’ve been looking to get into Nottingham for about a year but can’t get the pitch we want. The area we’re targeting is only 70 or 80 metres long and the supply of suitable units is very tight.”
The options available to operators are further limited by Nottingham’s saturation zone. In 2005 Nottingham city council attempted to combat crime and anti-social behaviour by introducing a policy putting the onus on the applicant to show the licensing authority why an application for a new premises should be granted.
Licensed operators welcome
Nottingham City Council’s portfolio holder for community and customer services, Toby Neal, says: “Licensed operations looking to open new premises are very welcome in Nottingham and each application is looked at on its own merits.”
Yet many fear the policy will discourage quality operators looking to enter the city. Nottingham BID director Andy Crawford says: “Since the policy came in, the style and quality of operators has improved dramatically. The local authority ought to take a more commercial view that recognises the important role leisure plays in the local economy.”
Sought-after brand The Alchemist recently had its licence application for a building on Pelham Street turned down and now hopes to move into 11 King Street, subject to minor variations in the existing licence.
The Alchemist persevered, but others may not be as patient. New World Trading Company brand The Botanist has agree a deal to open in West Bridgford in October but is struggling to secure a city centre site.
Property manager Theo Fordham. “We saw a unit in Hockley but our lawyers said given the council’s policy we shouldn’t bother trying. We’ll keep looking but won’t throw ourselves at any old deal.
“There are units with existing licences which I’m sure would be available at the right price, but we don’t want to be paying hefty premiums. There is a danger operators will simply look elsewhere.”
Claire Robson
