Top restaurant brands see turnover decline 20% in 2020, report finds
The data looks at the top 25 restaurant brands in the UK in terms of who has published its reported 2020 turnovers and operating profits, including Nando’s, Wagamama, Cosy Club, Pizza Express and TGI Fridays
The top 25 restaurant groups in the UK have reported a reduced combined turnover of -20.1% year-on-year in the 2020 financial year at £2.1bn, the latest data from the Lumina Intelligence Operator Data Index revealed.
The report found that the average operating profit across the leading 25 restaurant groups has fallen to 4.6% from a high of 11.2% in 2015.
Additionally, the data revealed that branded restaurants saw outlet decline fall to -7.9% in December 2020, following turnover declines and reductions in operating profit.
Lumina Intelligence said a multitude of factors have seen profit margins decline in the past five years, including increases to staff costs through rises in legal wages, business costs increases, price rises, fluctuations in food costs, and hiking property prices.
The top five restaurant brands in the UK in terms of reported 2020 turnover reportedly are Nando’s, Wagamama, Cosy Club, Pizza Express and TGI Fridays.
Katherine Prowse, senior insight manager at Lumina Intelligence, said: “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.
“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.”
