Expect to see 17 new sites opening a week this year as key operators in the industry continue to expand, M&C Allegra Foodservice’s latest Outlet Growth Analysis report suggests.
Analysing data focussing on the leading 150 casual restaurants, fast food and pub operators, the research found that outlet growth was set to reach a rate of 6.3% this year – resulting in 872 new outlets, up from 847 in 2015.
The growth will be fuelled by established brands - Domino’s is expected to increase its estate by 40 sites - as well as newer, emerging brands.
Sourdough pizza concept Franco Manca is forecast to open seven new stores this year and Thai concept Koh Thai Tapas is forecast to grow its estate from nine to 13, the report stated.
“One thing that stood out in this analysis is that we are seeing established cuisines such as American and Italian under increasing pressure from newer, more adventurous ones, not least South East Asian and Latin & South American,” M&C Allegra senior analyst Peter Linden said.
“South East Asian is set to be the fastest growing cuisine in 2016, with outlet growth of 26% expected in 2016, up from 13% in 2015.”
Big on flavour, comparatively healthy and relatively low cost, the report said South East Asian cuisine expansion would be fuelled by brands including Giggling Squid, Pho and Thaikhun.
Emerging Brands (defined by the report as those with 15-30 outlets) will be led by Turtle Bay - which is expected to add 12 sites to its already 25 strong estate this year.
Meanwhile, Medium-Sized Brands (those with 30-50 outlets) will be led by Five Guys – expected to add 25 sites to the current portfolio of 40.
The report also noted that because of continued growth in regions outside of London, rising regional rents would pose a key challenge over the next few years as successful operators with vast financial resources expanded.
For more information contact Richard Hayman on richard.hayman@mcallegra-fs.com.
