Restaurant and pub property prices to continue to rise in 2016

Gaëlle Laforest

20 January 2016

Property prices will continue to rise across hotels, restaurants and pubs, according to the annual state of the market report from property specialists Christie & Co.

Other main predictions for 2016 include a continued rise in the numbers of restaurants, more pubs sold, and more mergers in the pub market.

In 2015, pubs grew in value by 10.1%, topping the charts ahead of restaurants at 9.9% and hotels at 9.2%.

In 2016, demand for managed properties is expected to continue rising. Christie & Co expects to see sub-£20m pub group deals or mergers and acquisitions by multi-site owners, and up to 3,000 pubs sold once a decision is made on the market rent only option.

Meanwhile, the restaurant sector was driven by the influence of millenials, increased demand for small sites, and a fast-growing fast casual dining sector. There was a 33% increase in restaurant mandates in 2015, with 210 restaurants currently for sale in the UK.

Simon Chaplin, head of pubs and restaurants at Christie & Co for London, said: '2015 brought a wider variety of new restaurant concepts to the market, characterised by the innovative and inspired. As consumers continue to demand more choice, better quality and good service, restaurants numbers will continue to swell.

'The rise of the street food phenomenon was a big factor in 2015, and, as a result, the fast casual sector is the fastest growing at 7%-8% a year. Established brands are now trying to replicate this success as they realise customers want something different and to be challenged. Next year we will continue to see entrepreneurs expand new brands from around the globe.'

According to the report, we're also likely to see a rise in the number of coffee shops, including independents, in 2016.

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