Restaurant industry will return to growth in 2010

4th March 2009, 11:00am

Analysts have predicted that the restaurant industry will bounce back from the credit crunch and return to growth in 2010, despite the recession becoming more severe and prolonged than originally anticipated.

The UK Restaurants Market Development Report highlighted how the next five years will see the value of the restaurant industry increase to £5449 million. Estimations show that 2010 will see the restaurant market grow by a modest 1%.

But figures from Market and Business Development (MBD) show that the current situation is continuing to decline.

In 2008 the overall restaurant market fell by 3% to £5373 million and the increased economic uncertainty placed pressure on restaurant turnover, particularly in the second half of the year.

Value sales within the traditional restaurants sector declined by 2% to £949 million but the report added that the importance of dining out had risen by 1% since 2004 largely due to celebrity chefs, increased media attention and a revival of British cooking.

The report added that restaurants are facing increasing competition from the pub sector as it turns its attention to food sales. 

Supermarkets and their 'restaurant style' meals packages are also threatening the restaurant industry as more consumers opt to stay in.

Restaurant closures are set to increase as businesses struggle to secure the capital they need to operate on a daily basis, according to MBD.

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• 02 Mar 2009 - Reputation beats price when dining out
• 27 Feb 2009 - Restaurant managers do 47 days unpaid overtime
• 25 Feb 2009 - Restaurant chains need to work harder
• 20 Feb 2009 - Feeling the Pinch
• 18 Feb 2009 - Recession is not changing workers' attitudes
• 17 Feb 2009 - Online restaurant bookings surge
• 12 Feb 2009 - A crunch lunch website launches
• 10 Feb 2009 - VAT cut has not worked

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