Food and beverage operators plan to capitalise on changing shopping habits and open nearly 3,000 new sites by the end of 2018, according to Cushman & Wakefield’s UK Food & Beverage Market report.
The growth in online shopping, which has seen the number of clothing and white goods stores decline, has prompted shopping centres to focus on luring café and restaurant operators.
Cushman & Wakefield surveyed 95 F&B operators on their future plans, with results suggesting there will be a net addition of 1,414 units in 2017 and 1,515 units in 2018 – plans which will require a net increase in consumer F&B spending of £674m and £722m respectively.
The research revealed that between January 2014 and January 2017 the number of clothing, footwear and white goods shops decreased by 2,185, while the number of restaurants and cafés increased by 2,998 – up 9%.
As a result, F&B now accounts for one fifth of all retail and leisure units.
Thomas Rose, head of Cushman & Wakefield’s leisure and restaurants team, said: “F&B outlets, which offer an experience that cannot be replaced wholly online, present an opportunity for landlords to increase dwell time and expenditure within their centres.”
The number of cafés and fast food/takeaways opening in the last three years are up 1,527 and 1,035 respectively – the strongest growth within the F&B sector.
In the same period, the number of restaurants has increased by 897, with the expansion of American food operators at the expense of Indian and Chinese restaurants, which were down 205 and 192 sites respectively.
The report also shows that F&B growth has become increasingly dominated by multiple retailers – defined as those with five outlets or more. These operators accounted for 37% of net expansion in 2014, which increased to 49% by 2016. The report suggests this market share will continue to rise as multiple operators expand their presence across the UK.
The rise in UK consumers’ taste for coffee since 2000 means Costa, Starbucks and Caffè Nero continue to lead the pack with strong expansion plans.
Growth in the eating out market is expected to be 3.8% in 2017, well ahead of total consumer spending – including clothing and footwear, household furnishings and food. From 2016 to 2021, the eating out market is forecast to increase by 17% and be worth over £103bn.
Darren Yates, Cushman & Wakefield’s head of retail insight, said: “The total growth in the eating out market can sustain the projected growth in outlet numbers but several downside risks remain, such as higher inflation, potential business rate increases, a rise in the living wage and, potentially, tighter labour laws due to Brexit.”
To send feedback, e-mail amber.rolt@egi.co.uk or tweet @AmberRoltEG or @estatesgazette
