Branded restaurants to grow 6.5% annually and outperform rest of hospitality market

The branded restaurant market is set to significantly outperform the rest of the retail and hospitality markets, with 6.5% annual growth and sales reaching an estimated £11.6b by the end of 2012.

According to Allegra's Project Restaurant 2012report, published in association with Barclays, the branded restaurant market takes a 21% share of the overall eating-out market value, with total eating-out turnover growth forecast of 3.9% for 2012.

The report, which surveyed more than 18,000 consumers about their eating-out habits and close to 300 industry leaders about their expectations for the industry, identifies that the usage of branded restaurants will continue to grow over the next 12 months as the majority of consumers, 70%, expect to eat out with the same frequency.

The growth reflects the combined effect of like-for-like increases boosted by inflation, together with the physical expansion of outlets.

Allegra's report splits the branded sector into pubs, casual restaurants and fast food. In the branded fast-food chains, expansion growth has been led by key players McDonald's, Domino's and KFC, who have the highest value forecast growth of 7.9% reaching £4.6b.

Read More