Top restaurant brands see 20% turnover decline in 2020
Reflecting the devastating impact of the pandemic, the top 25 UK restaurant groups reported a combined turnover of £2.1bn in the 2020 financial year, down 20.1% year-on-year.
The data refers to the top 25 restaurant groups who have published its reported turnovers and operating profits.
Average operating profit across the leading 25 restaurant groups has fallen to just 4.6%, from a high of 11.2% in 2015. In the past five years a multitude of factors have seen profit margins decline, including increases to staff costs through rises in legal wages, business costs increases, price rises and fluctuations in food costs as well as hiking property prices.
In terms of estates, branded restaurants saw outlet decline fall to -7.9% in December 2020, following turnover declines and reductions in operating profit.
The top five restaurant brands in the UK in terms of reported 2020 turnover are Nando’s, Wagamama, Cosy Club, Pizza Express and TGI Fridays.
“Following four strong years of turnover growth, the impact of the Coronavirus pandemic was felt as early as February 2020, with consumers starting to reduce socialising," says Katherine Prowse, senior insight manager at Lumina Intelligence.
"Government restrictions were introduced in March 2020 when the UK entered its first national lockdown, seeing the closure of restaurants.
"Negative outlet growth means that operators will need to focus on growing turnover through existing stores by utilising levers of growth including growing volumes with new customers and new day parts, menu price inflation and upselling."
Find out more about Lumina Intelligence’s Operator Data Index here.
