Hunger for UK restaurant takeovers hides aversion

Takeovers of UK restaurants have doubled in the past 12 months and are “a strong vote of confidence” in the sector, a report by TWM Solicitors found last week.

- Jasper Reid

But industry experts are less bullish and point to major shifts in restaurant economics. Food inflation has climbed for the past five months. Since 2020, the price of a PizzaExpress margherita has doubled to £14.45, making a meal for a family of four £100 or more.

Meanwhile, restaurant wages have increased by 60% between 2020-25, largely driven by changes in the law.

Rents on good sites are static or up, as are costs for utilities, regulation and construction. Competition remains intense with the “dark” kitchens that aggregate delivery services.