Branded restaurants outperforming wider market


The growth of the branded restaurant market is “significantly outperforming” the wider retail and hospitality markets as consumers flock to trusted names, according to new research.

Analyst firm Allegra claims the branded restaurant sector now holds a 21% share of the eating out market value and is one of the “key reasons” why overall sales are forecasted to grow almost 4% in 2012.

Among the branded fast food chains, expansion growth has been led by McDonald’s, Domino’s and KFC, which have the highest value forecast growth of 7.9%, reaching £4.6 billion.

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Outlet growth for branded casual chains of 4.6%, meanwhile, is driven by Prezzo adding 45 stores and growth of 31%, Pizza Express with 31 new stores and Carluccio’s adding 16 outlets.

Expansion is a key feature of casual chains, reaching 3,777 outlets and growing by a total of 166 outlets in 2012.

In the pub space, branded pub restaurant players, including JD Wetherspoon, are significantly outperforming the overall pub market.

Allegra says that long term growth prospects remain “positive”, with branded restaurant turnover predicted to rise 7.8% to £12.5 billion in 2013.

By 2015 there are expected to be 13,800 outlets that fit into the branded restaurant category.

“The strength of a brand should not be underestimated in the restaurant market,” said Anya Marco, director of insight at Allegra Strategies. “Branded restaurants are out-performing both the wider hospitality market and the overall retail sector.”

She added: “With established marketing prowess, delivery of consistency and familiarity, and the ability to capitalise on new outlet expansion opportunities, branded chains will continue to drive growth in the market.”

Tags : catering equipmentfoodservicePizza ExpressReportsrestaurant chainrestaurants
Andrew Seymour

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