A decline in the number of new eating out brands qualifying for Horizons’ latest Ones To Watch research along with a slower rate of expansion for more established ones points to a slowdown in entrepreneurial activity in the foodservice sector over the past 6 months, according to the foodservice industry research firm.
This could spell bad news for dealers and manufacturers if the amount of foodservice outlets and therefore demand starts shrinking.
Horizons’ biannual Ones To Watch research tracks the emergence and growth of new eating out brands once they reach five units through their period of critical growth to 25 outlets. Brands qualify for inclusion if they’ve shown growth of at least 20% over the previous 3 years combined.
Horizons’ analyst Nicola Knight commented: “Foodservice is traditionally a sector that attracts a great deal of entrepreneurial activity. Some of these concepts will inevitably fail in the longer term, but others go on to become the next big high street brands such as Bill’s, Byron, Jamie’s, Tossed and Leon.
“Overall there is still growth in the number of new concepts included in Ones To Watch but at just seven new brands, a total of 190, this is fewer than we have seen in its 5 year history. In April 2016 the research revealed 12 new concepts, a total of 183, while this time last year 30 additional brands met the criteria.”
Ones To Watch also tracks when the fledgling brands reach a critical mass of over 25 outlets.