The strong increase in the number of casual dining outlets on retail parks has been a significant recent trend in the out-of-town sector, according to the latest research from Knight Frank.
It found that at least four times more A3 units opened on retail parks compared with fast food outlets over the last year.
It said that operators such as Nando’s, ASK and Pizza Express have recorded strong organic growth and have helped to drive a change in consumer habits and, in the process, have helped to extend dwell time and enable schemes to trade for longer during the day.
The average rent across 206 restaurants was found to be £24.36 per sq ft, with an average size of 3,450 sq ft.
Andrew McGregor, head of out of town retail and leisure, Knight Frank, said: “Investors’ sentiment for out-of-town retail parks, substantially let to discount operators, is patchy at best. However, Knight Frank’s analysis would suggest that many of these operators are significant covenants in their own right, and whilst they are driving aggressive tenant packages, they are extremely successful retailers which generate high levels of customer footfall.
“Coupled with this, many landlords are now considering A3, food and beverage offers, on their out-of-town retail parks, which is further enhancing footfall and dwell time for shoppers seeking sustenance. A prime example of this is the recent addition of Frankie & Benny’s and Harvester at Birmingham Fort.”
