Rapid growth of branded concepts putting increasing pressure on independent restaurants

By Peter Ruddick

06-Feb-2013 - Last updated on 06-Feb-2013 at 13:32 GMT

Related tags: Concept

Branded restaurant concepts, like the ever-popular Nando's, are increasingly putting independent eateries under pressure, according to consultants CGA Strategy

Forty per cent of independent restaurants now have an outlet of a branded chain within one mile of their business, according to new figures released by trade consultants CGA Strategy.

The latest statistics from the firm's Outlet Index show the branded concept market is growing rapidly. There are 670 more branded food pubs and restaurants compared to last year - in the same period the number of independent, local eateries shrunk by 370 outlets.

Scott Elliott, account director at CGA Strategy, said the figures showed free trade venues needed to continue to learn from their branded rivals - in particular with regards to marketing.

"Consistency in all areas is more important than ever as it diminishes perceived risk, and visible online feedback channels can be incredibly useful in gaining ‘advocates’ online. In general, branded concepts have seriously lifted their game across social media, customer engagement, loyalty and reward.

"In doing so, there is increased competition for front-of-mind awareness when the consumer is deciding where to spend that bit of spare cash," he added.