Publication
Restructuring in the casual dining sector: what does the future hold?
A positive that we can take from the last year is that it has encouraged chains to restructure and reshape their portfolios and deal with those sites which were struggling pre-COVID. Phil Reynolds Restructuring Advisory
Synopsis
The UK casual dining sector enjoyed many years of strong growth over the last decade, but more recently it has become a far more challenging operating environment. Prior to the pandemic, a ‘casual dining crunch’ had seen a number of high-profile failures, as an oversaturated market, changing consumer tastes and Brexit challenges exposed the vulnerabilities of some chains. While many have responded to the crisis with great dynamism, national lockdowns, local restrictions and a raft of new regulations have kept up pressure in the sector. The Centre for Retail Research reports that almost 30,000 jobs were lost across fine dining, independent businesses and multiple large casual-dining chains during 2020, up from 11,280 the year before* 1 . Here, we explore the specific challenges the sector is facing, as well as the positive steps businesses can take both immediately and in the longer term.
Phil Reynolds Partner Restructuring Advisory London +44 (0)20 3005 4270 phil.reynolds@frpadvisory.com
Raj Mittal Partner Restructuring Advisory Birmingham +44 (0)121 710 1685 raj.mittal@frpadvisory.com
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