The UK Restaurants Industry - a Review of 2009
The UK Restaurants Industry - a Review of 2009
LONDON, November 10- As we approach the end of a turbulent 2009 for UK Restaurant operators,
Plimsoll have taken a look back at the highs and lows of the last 12 months
and looked forward to the threats and opportunities facing the market in
2010.
526 companies in the market are finishing the year in financial
difficulty. David Pattison, author of the new Plimsoll Analysis: An
assessment of the top 1000 UK Restaurant operators explains, “Having clung on
through the bad times many of these struggling companies are going to run out
of time and fail just before the recovery and pick up in demand really takes
hold. Sadly, some of them are just too weak to carry on and there will be a
spike of failures in the New Year. On the flipside, their demise will bring a
welcome reduction in competitive pressure for those left”.
However, among the gloom (which, lets face it; has been pretty deep in
2009) there have actually been some outstanding performers. Pattison says “A
number of operators have managed to improve their performance in the latest
year. They are part of a band of 263 companies that prove success can still
be achieved in the industry despite lower demand and rising costs. They also
prove that bad companies fail in a recession; good companies simply do not.
These companies will lead the industry out of recession with some smart
acquisitions and maintaining their recent success”.
Pattison is also convinced the market is due a prolonged period of
consolidation with the number of companies in trouble leading to heightened
takeover activity. He explains “With too many companies chasing weakened
demand it is inevitable that there are likely to be a number of high profile
mergers and takeovers. In all honesty it’s long overdue. Once demand started
to flag it was inevitable companies would be caught out. This period of
consolidation is needed to sort out the dead wood. We have named 86 companies
as the best acquisition prospects in the market”.
He also reserves special mention for those reckless companies that
continue to chase sales despite mounting losses, “There are a group of 180
serial loss makers still operating in the market. For the 2nd and even 3rd
year running these companies have made a loss. Whether they are blatantly
chasing sales or just trying to maintain their market share, something has to
give. The recession has put prudence back at the forefront of boardroom
strategy and these companies have to cut their cloth accordingly or face the
consequences”.
Summing up, the new 2010 edition of the Plimsoll Industry Analysis shows
a buffeted market emerging from recession with a 1 in 3 operators making a
loss and over half of companies in financial difficulty but as Pattison
insists, “If you are going to make a success of 2010, you need to learn the
lesson of 2009. There are going to be big changes in the industry with lots
of takeovers, a number of high profile failures and even the odd surprise or
two along the way”.
The 2010 edition of the Plimsoll Industry Analysis - Restaurants
individually assessing every company in the UK market is available now. More
information is available at http://www.plimsoll.co.uk
Christopher Evans
Plimsoll Publishing Ltd
Scotswood House
Teesdale South
Stockton on Tees
TS17 5EF
Tel: +44(0)1642-626400
Fax: +44(0)1642-626410
http://www.plimsoll.co.uk
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Source: Plimsoll Publishing Ltd
Christopher Evans, Plimsoll Publishing Ltd, Scotswood House, Teesdale South, Stockton on Tees, TS17 5EF, Tel: +44(0)1642-626400, Fax: +44(0)1642-626410, .(JavaScript must be enabled to view this email address)