Small restaurants suffer as diners opt for familiar chains

By Becky Paskin , 05-May-2009

Related topics: Trends & Reports

Independent restaurant insolvencies rise as diners opt for ‘safer’ branded restaurant chains

Small restaurants suffer as diners opt for familiar chains

The number of restaurant insolvencies has grown by 70 per cent since the beginning of last year, as diners continue to opt for familiar branded restaurants when eating out.

 

Statistics released today by PricewaterhouseCoopers revealed that 186 restaurant companies joined the insolvency register in Q1 of 2009 alone, a 30 per cent increase on Q4 of 2008 and a greater number than hotel and pub insolvencies combined.

 

Stephen Broome, director of Hospitality and Leisure at PwC, said the majority of restaurant failures were ‘smaller often one-off restaurants at the lower end of the market,’ which diners are continuing to shun in favour of more familiar brands.

 

“Diners shun the risk of experimentation in favour of the safer option branded restaurants provide and this combined with a heavy investment in promotional activity has resulted in some recent claims of positive results from branded restaurant operators,” he said.

 

The PwC figures also revealed that pub insolvencies had reduced to pre-credit crunch levels in the three months up to March 2009, providing a ray of hope to the pub industry that has seen closures reach an average of six per day.

 

“Perhaps the predicted heat wave and greater numbers of people planning a UK holiday will at last provide some growth potential for an industry where good news has been hard to find,” Broome continued.

 

The number of hotel insolvencies reached 46 in Q1 of 2009, an increase of seven on Q4 of 2008.

Related Articles on this topic

BigHighlights

Michael Warren on heading up Harbour Hotels, his Hotel du Vin experience and why no two days are the same in hospitality
Small talk

Michael Warren on heading up Harbour Hotels, his Hotel du Vin experience and why no two days are the same in hospitality

Michael Warren spent 17 years at Hotel du Vin and Malmaison, helping with the development and expansion...

People on the Move in Hospitality: August 2014

People on the Move in Hospitality: August 2014

We've rounded up some of the latest movers and shakers in the hospitality industry, with the past...

60-Second Skill with Nigel Haworth: finely chopped onion

60-Second Skill with Nigel Haworth: finely chopped onion

Being able to chop finely is an essential skill if you want to make sauces or stocks...

Dish Deconstucted: José Pizarro's roasted monkfish with Serrano ham, black olives and thyme

Dish Deconstucted: José Pizarro's roasted monkfish with Serrano ham, black olives and thyme

At the recent Estrella Damm Gastronomy Congress, chef and restaurateur José Pizarro revealed the method behind a dish full...

Infographic: How to handle angry customers

Infographic: How to handle angry customers

Dealing with angry customers can be one of the most difficult, stressful and challenging parts of working...

Joanne Barratt: Pearls of Wisdom
Pearls of Wisdom

Joanne Barratt: Pearls of Wisdom

QHotels’ group operations manager talks about how important a strong team culture is in maintaining excellent standards...

Find us on Facebook

Digital Edition - Restaurant Magazine

Access to the Restaurant Magazine digital edition