Request Form: UK Restaurant Sector Analysis & Benchmarking
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Chained restaurants grew through last recessionSales at chained full-service restaurants grew each year during the last recession (whilst independents took 3 years to return to 2007 sales levels) and have significantly outperformed independents since then |
Sales per chained site recorded new high in 2019Sales per chained site grew every year until 2016 and, following site closures during 2017-2019 due to overcapacity, have again returned to growth in 2019. Additionally, chained sites earn double that of an independent site |
International re-openings at 80% of 2019 levelsWithin two weeks of reopening, restaurant sales returned to 80% of 2019 levels in both Germany and Australia. Ireland reached 80% of 2019 levels within a few days of re-opening, whilst the UK has reached 70% of 2019 levels since re-opening on 4th July Recoveries have continued in the UK, Germany and Ireland, with all industries now consistently out-performing 2019 levels. Australia’s recovery, however, has been affected by re-imposed lockdown measures |
The Restaurant Group forecast to somewhat recover by FY21Updated broker consensus predicts a 38% reduction in forecast FY21 revenue against previous estimates. Decrease tracks with corporate broker Goodbody & Company’s assumption that 38% of The Restaurant Group’s sites will remain closed post Covid-19. Valuation has declined dramatically over the last four months |
Cost analysis within the sectorSite costs contribute c.80% of sales and central costs c. 8% (average of £100,000 per site across sample restaurant group). Labour constitutes the largest site expense (average of c.31% sales), closely followed by property and other (c.27%) and food & drink (24%) |
Summary
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Lincoln International's UK restaurant sector experts discover that long-term growth in restaurant demand, and initial re-opening after COVID-19, data bodes well for an industry recovery. - Complete form to request full report
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