Restaurant sales in London fell compared to the rest of the UK based on a recent report.
The report suggested that the capital was feeling the pinch as customers reduced their spending habits on luxury items including eating out.
The study shows that sales had fallen 3.2% for the same period in 2016 compared with September 2016, while sales in restaurants across the rest of the country grew by 0.2%.
The fall is a continuation of falling spending from August where London saw a decline of 1.6%. This is due to a couple of main factors – the first being consumers are spending less, and, the supply of restaurant venues has outstripped demand.
Owners are now focusing their efforts on marketing for the festive period where they hope to claw back some of the lost revenues.
The MCA report found that independent restaurants typically local restaurants serving ethnic cuisine make up 68% of restaurant sales equating to £13.5 billion in sales.
We have seen ourselves through our business cash advance product which serves many restaurants as a financial product that smaller restaurants are doing well – all reporting steady growth, while the reports are indicating that the more leading brands are expanding and diluting these figures.
The future is going to be a turbulent time, and those restaurants will be tested. By concentrating on marketing, brand awareness, menu development and staying ahead of the competition these business owners could stand the test of tough times ahead.
Merchant Cash Advance reports that operators will need to achieve like for like growth of 3% over the next 3-5 years to retain profit levels.
So the advice is clear. To fight through the coming years and to remain profitable, operators will need to be competitive, pushing their marketing awareness, driving new customer sales and loyalty schemes, keeping their menu’s up to date and fresh and keep their business streamlined.