Takeaway sector booming despite restaurant troubles

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Takeaway sector booming despite restaurant troubles

The UK’s takeaway food sector has avoided the turmoil buffeting the restaurant sector shows research by Funding Options, the online business finance supermarket.

 

Funding Options research shows that the turnover of the UK’s Top 100 takeaways has risen 10% in just a year, up to £2.7bn from £2.46bn.

 

Profits at the UK’s top takeaway businesses have also increased over the same time, rising 13% to £180m from £160m. This contrasts sharply with the Top 100 UK restaurant groups, whose profits fell 64% to £125m from £345m over the last year.

 

80 of the Top 100 takeaways were profitable last year, compared to just 65 of the Top 100 restaurant groups.

 

The struggles of the UK restaurant sector are in part down to the simultaneous overexpansion of a larger number of private equity backed chains, many of which took on expensive property overheads. The oversaturation of the market has coincided with rising business rates, increased supplier and staff costs and weak consumer spending. As a result, many major chains such as Byron and Prezzo have been forced to close large numbers of branches.

 

Takeaways typically take smaller, non-prime, and therefore far cheaper property overheads.

 

“Takeaways have quickly adapted to changing trends in the food industry – moving quickly into higher margin healthy food. They have also been able to capitalise on the rising popularity of newer apps like Just Eat and Deliveroo.”

 

Read the full article on londonlovesbusiness.com