Restaurants and pubs closures among biggest net declines

The closure of restaurants and pubs are among the highest seen by sector on Britain’s high streets, according to the latest PwC and the Local Data Company analysis.

The first half of 2019 saw restaurant numbers decline by a net 100 sites, and pubs and bars by 96 – this compares to the largest net decline of 118 seen by fashion retailers – however takeaway outlets saw a net increase of 26 outlets. Overall there were 153 restaurant, 167 pub and bar, and 102 food to go outlet closures.

The Italian/pizza and American/burger channels accounted for the majority of closures during the first half of the year (87). But, despite the closures, pubs and food to go operators were among the top five fastest opening sectors – taking spaces on the high street when vacated by other brands.

A number of high-profile business administrations and CVAs in the casual dining sector contributed to the net decline in high street store numbers, which the report notes has the potential to ease in the coming year.

The report also noted that of the new restaurant, pub and food to go outlets to open, these were dominated by newer brands “and more relevant formats”, partly filling the space left by struggling chains.

The analysis showed that there has been a net decline of more than 1,200 chain stores on the top 500 high streets in Britain – the highest number since the research began in 2010, with 16 stores closing on average per day, and nine opening.

Lisa Hooker, consumer markets leader at PwC, said: “The record net decline in store numbers in the first half of 2019 shows that there’s been no let-up in the changing ways that people shop and the cost pressures affecting high street operators.

“Our research tells us that consumers still want to spend their money in well located and invested stores and leisure venues on the high street,” added Hooker.

“However, as consumers continue to change the way they shop and spend their leisure time, the reality is that we may need fewer high streets in the future. This opens up opportunities to repurpose high street space for other uses, while the remaining space evolves to meet consumer demand for convenience, choice and experience.”