Branded restaurant sales growth falls behind managed, branded and franchised pubs

By Stuart Stone contact

- Last updated on GMT

Pubs outstripping restaurants: branded restaurant sales are growing at a slower rate than pubs
Pubs outstripping restaurants: branded restaurant sales are growing at a slower rate than pubs
Research from MCA Insight reveals that sales growth in managed, branded and franchised pubs outstrips that of branded restaurants by 0.2%, for the first time in five years.

According to findings from research insight agency for the foodservice and hospitality sectors, MCA, branded restaurant sales are growing at a slower rate than those of managed, branded and franchised pubs for the first time in five years.

The report valued the UK restaurant market, consisting of 31,583 outlets, at £19.4bn, with 2018 sales growth standing at 3.7%.

In comparison, however, sales in managed, branded and franchised pubs are expected to grow by 3.9%.

The insight from MCA’s recently launched UK Restaurant Market Report 2018​ – conducted via online consumer surveys, analysis of MCA’s market sizing and company tracking databases and assorted operator-specific research – examines key trends affecting the market, the competitive landscape, changing needs of consumers and the outlook for future development.

MCA director of insight Steve Gotham said: “This is the first time in five years that we have seen managed, branded and franchised pubs have a higher rate of sales growth than branded restaurants.

“Impacted by slowing outlet growth, rising competition and pressures hitting margins, sales growth in branded restaurants has dipped from highs of about 7% in recent times.

“Consumer insight from MCA’s Eating Out Panel shows significantly higher ratings given by diners visiting pubs, than other restaurant channels, for both low prices and value for money.

“This has certainly contributed to the one-percentage-point increase in pubs' share of total restaurant occasions at dinner, the most expensive day part for consumers."

For more information and to find out how you can access the MCA UK Restaurant Market Report 2018​, contact MCA through its website.

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