The recent administrations and closures of restaurant space so far this year will leave almost 500,000 sq ft of empty space across retail destinations in the UK, according to EG data.
More than 150 units are set to become vacant by the anticipated closures of Jamie’s Italian, Byron Burger, Carluccio’s, Prezzo, Chimichanga and Strada. Around 40% of that space, or 205,000 sq ft, is located in the South East and London, representative of both population and therefore destination density.
Looking at average spend, the chains that are in trouble are more expensive in terms of menu sampling. So have customers have been put off by a menu that is too large and has too many price anomalies?
The food and beverage sector continues to struggle to adapt to various economic uncertainties; rising business rates, the increased National Living Wage and the fallout from Brexit in terms of rising costs of raw goods, as well as shipping, are all direct contributors to tightening profits margins.
The shift to and creation of more casual dining outlets throughout the UK has become synonymous with the success of retail and leisure destination. This has left a saturated market, one in which many chains have stretched their physical portfolios and, as a result, are struggling to pay landlords.
The anticipated slowdown in food and beverage has come quicker for some than others, but what is more certain is that for many, that bubble is about to burst.
To send feedback e-mail james.child@egi.co.uk or tweet @jamesChildEG or @estatesgazette
