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DATA: Top 25 restaurant groups shed £2 billion during crisis year

TGI Friday’s Leicester

The combined turnover of the top 25 restaurant groups plunged £2.1 billion in the 2020 financial year, new figures show.  

The drop – equivalent to around 20% – follows a stop-start year in which hospitality businesses were forced to close for extended periods due to coronavirus restrictions.

Data analysed by Lumina Intelligence shows that average operating profit across the leading 25 restaurant groups fell to just 4.6% from a high of 11.2% in 2015.

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In the past five years, a multitude of factors have seen profit margins decline, including increases to staff costs through rises in legal wages, business costs increases, price rises and fluctuations in food costs as well as hiking property prices, it said.

In terms of estates, branded restaurants saw outlet decline fall to 8% in December 2020, following turnover declines and reductions in operating profit.

The top five restaurant brands in the UK in terms of reported 2020 turnover are Nando’s, Wagamama, Cosy Club, Pizza Express and TGI Fridays.

Katherine Prowse, senior insight manager at Lumina Intelligence, said: “Following four strong years of turnover growth, the impact of the coronavirus pandemic was felt as early as February 2020, with consumers starting to reduce socialising.

“Government restrictions were introduced in March 2020 when the UK entered its first national lockdown, seeing the closure of restaurants. Negative outlet growth means that operators will need to focus on growing turnover through existing stores by utilising levers of growth including growing volumes with new customers and new day parts, menu price inflation and upselling.

The figures are based on data from the top 25 restaurant groups that have published their 2020 accounts.

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Tags : researchRestaurants
Andrew Seymour

The author Andrew Seymour

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