PLIMSOLL Publishing’s annual acquisition survey indicates a buoyancy in the restaurant market despite much negative press.
The report suggests that contrary to fears about the credit market, restaurants - and specifically a strong group of 129 companies - are in a good position.
The UK’s top 456 companies were included in the survey, valued, and assessed on their future prospects. 122 companies were found to be operating in areas of growth in extremely profitable areas of the market that would make ‘good strategic acquisitions.
The report claims that the UK restaurant industry is awash with cash and companies should go on the offensive to buy up the competition in 2008.
David Pattison, Senior Acquisition Analyst, said: “There is absolute evidence that the rich are getting richer as the gap between those making massive profits and those missing out has widened in the last few years.
"There has never been a better time for these dynamic companies to splash the cash.
“Acquirers have been reluctant to invest heavily, instead they have been content to snap up bargain basement companies often getting bad deals, paying peanuts and getting monkeys.
"This attitude needs to change. What our report suggests is that companies need to look at the wider strategic picture and spend their money wisely.”