Average EBITDA margins across bars and restaurant have increased by 5% over the past 12 months, according to a new report by Shaw & Co.
The specialist corporate finance advisory firm specialist’s second annual report into the F&B industry found that companies across the industry sub-sectors had seen an increase in average EBITDA margins over the last 12 months, varying in range between 1% and 5%.
For bars and restaurants, Shaw found average EBITDA margins were around 15% – a 5% increase on the previous 12-month period.
The report found that average gross profit margins remained healthy across all sub-sectors of the F&B industry, however the data for the period does not capture the margin pressure from rising energy and raw material costs.
Average gross profit margins for bars and restaurants remained level with 12 months previously, at 49%, out of almost 1,000 companies assessed.
However, using the last reported EBITDA figure for the eating and drinking out market, the figure for bars and restaurants was down on the prior year, to reach an average of £60.3m.
Looking at the level of borrowing, for bars and restaurants the amount had gone up very slightly to £21.26bn overall, with borrowing capacity reported to be down slightly at a debt to EBITDA multiple of 5.1.
The report segments F&B businesses with earnings of more than £1m and assesses their performance, debt levels and M&A activity.
