The of the sector IPO, the continued strength of the M&A market and further restaurants in retail stores are three of the 10 predictions for 2014 from advisory firm BDO.
It said that 2014 could be the year when capital markets re-discover restaurants and bars and that more flotations than for many years should be expected. The company also expects the rise of the pub: “Growth in consumer spend in pubs will rise by more than growth in spend in restaurants as they food-led pubs continue to improve their offer.”
It said: “After struggling until recently, 2014 will see continued M&A activity. As retailers look for innovative ways to drive footfall, expect the more savvy retailers to start offering dining experiences in order to increase dwell time.”
The company also expects more pop-ups and mobile units, more single item menus and the growth of gourmet fast food.
It said: “As the demand for ‘street food’ continues to go from strength to strength, operators will utilise extremely short term leases or mobile units in order to create an exclusivity surrounding their offerings. With the younger generation of diners regularly enamoured with the idea of trying the ‘best’ of a certain dish, expect to see more operators opening single item restaurants where they do one dish extremely well.
“2013 was the year of the gourmet burger; 2014 will see demand for other forms of gourmet fast food hit the spot light - chicken wings, ribs etc still have room to grow.”
The group forecasts a reduction in the level of discounting and that the demand for quality and provenance will grow.
The company said: “As operators look to improve margin, the focus on discounting will diminish. This will be in small stages, however, so don’t expect them to disappear but they will become more focussed and less frequent.”
Finally it believes dishes containing ingredients with protected designation of origin will be increasingly sought after and that the health drive will continue.
It said: “The UK’s health drive won’t be tempered this year as consumers will continue to try and watch their waist lines, particularly during lunch hours.”
