Restaurant and bar owners confident about future says news CGA Peach study

By Richard Siddle

Published: 25 February, 2015

Up to 90% of pub, bar and restaurant owners are optimistic about their businesses in the year ahead despite ongoing concerns about staff costs and finding a niche in the market, according to latest research from CGA Peach.

The study canvassed opinion from owners of on-trade outlets right across the country in different formats and styles of outlet.

It shows how the on-trade is successfully bringing new ideas to the market and how consumers are turning increasingly to venues that offer flexible formats, barbecue food and a strong craft beer offer.

The Business Leaders' Survey found that nine in 10 business leaders were either very optimistic (25%) or fairly optimistic (66%) about the future with those situated within the M25 even more confident than in the rest of the country.

But they do have three major concerns. Nearly three in four said they were either very concerned (38%) or fairly concerned (34%) by property and rental costs, as they face up to increases in the last year. This is particularly acute in London.

Two thirds are either very concerned (22%) or fairly concerned (42%) by "saturation and possible over-supply" of outlets in their area.

Nearly a quarter (18%) were either very concerned or fairly concerned (46%) by staffing costs like wages and pensions.

The key trends to come out of what is the fifth Business Leaders' Survey, which was sponsored by Omnico, were:

1 Flexi formats and premium fast food are on the up. Two in three (66%) business leaders think all-day and flexible formats will thrive in

2015. Premium fast food, of the sort provided by Leon and Tortilla, is tipped by almost as many (61%).

2 Businesses have the tools to grow.

It appears to be getting easier for businesses to find the necessary funding for expansion and growth. Two in three of those surveyed said "access" has improved significantly (32%) or marginally (35%) over the last year.

Crowdfunding is proving particularly popular.

One in three (31%) leaders plans to open more then 10 sites in 2015.

Douglas Blyde visits the Hunt family restaurant Pavilion

3 Demand for transport hubs is soaring. Key UK travel centres like airports and train stations are identified as growth hotspots by more

than three in four (78%) leaders. Town centre developments are the next best rated (56%).

4 There's a buzz about barbecue. More than half (57%) of leaders think barbecue will make a big impact on the market in 2015 - up seven

percentage points from last year.

5 Drinks are getting crafty. Nearly two thirds (64%) think craft beer will make a big impact this year followed by micro-distillery spirits (43%).

6 People are paramount. More than four in five leaders identify engaged staff (88%) and a high quality customer experience (83%) as

very important operational issues. Up to 79% said they would increase investment in staff training this year, and 73% would look to improve customer service.

7 Value is about more than price. Three in five (61%) leaders think value for money is key to their business with 66% citing food quality and 79% customer service.

8 Branding is a challenge. A strong brand identity is vital in a competitive market, but two in five (40%) leaders think their business

lags behind their competition on this front.

Peter Martin of CGA Peach, said of the research: "After a relatively quiet few years, our Business Leaders' Survey shows that eating and drinking out brands are firmly back in growth mode this year, building on the success most enjoyed in 2014, when most companies surveyed said they had met or exceeded their own expectations. But with competition fiercer than ever before brands will need to be on top of their game to thrive. Our poll of the UK's brightest and best leaders reveals a wealth of opportunities out there - but a few pitfalls to be wary of too."

The full report is available for £199 from rachel.cooke@cgapeach.co.uk.

* You can still buy Harpers exclusive study analysing consumer drrinking habits and behaviour in the UK on-trade in our 2014 on-trade report.

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