The UK’s top 100 takeaway businesses have seen a 10% increase in turnover from £2.7bn from £2.46bn in the past year, research from credit broker Funding Options has found.
Furthermore, profits at the UK’s top takeaway businesses have risen from £160m to £180m, a 13% increase. In contrast, the UK’s top 100 restaurant groups have seen profits fall by 64% to £125m from £345m.
Some 80 of the Top 100 takeaways were profitable last year, compared to just 65 of the Top 100 restaurant groups.
A recent report by CGA and AlixPartners showed that the restaurant sector was seeing a drop in numbers, with an average two closures a week. Analysis by UHY Hacker Young also showed that the collective debt of the UK’s top 100 restaurants had risen by 19% in a year.
Funding Options attributed the sector’s struggles to overexpansion, oversaturation of the market, increased costs and weak consumer spending.
The credit broker also suggested that the boom in delivery apps had affected the fortunes of restaurants and takeaways. While the apps increase overall sales for takeaways, it was found to restrict the higher margin alcohol sales for restaurants.
It was also said that the ability to quickly respond to trends worked in the favour of takeaways.
Conrad Ford, CEO of Funding Options, said: “Takeaways have been more resilient than more upmarket restaurant in the face of the post-Brexit vote slowdown in consumer spending. Takeaway owners have also been more cautious about taking on potentially ruinously expensive property costs.”
“Takeaways have quickly adapted to changing trends in the food industry – moving quickly into higher margin healthy food. They have also been able to capitalise on the rising popularity of newer apps like JustEat and Deliveroo.”