The industry
Walk down any high street in the country and you can be almost certain of finding at least a small selection of restaurants. Not only has eating out become a staple leisure activity for the UK population, but it’s also one of the most popular dream businesses. Individuals who ordinarily wouldn’t have the slightest inclination to run their own business are drawn to the glamour of the restaurant trade, either through a passion for cooking or a love of playing the host.
The reality of actually running a restaurant is a harsh one however. Make no mistake, it’s extremely hard work. And with so much competition around, if you don’t get the founding principles spot on, you’ll struggle. But if the idea of being surrounded by food, providing excellent service, seeing people enjoy themselves and being at the heart of the community is your idea of heaven, then the restaurant trade could be just right for you.
Five new restaurants opened every day in the UK during 2007, according to research by catering industry organisation Startupsplus, making a total of 1,803. Indian and Chinese restaurants accounted for a quarter of all new restaurants. In total, out of all the restaurants opened in 2007, 40% of them served ethnic food ranging from Persian to Korean.
However before you get too excited about the fact that nearly 2000 new restaurants opened in 2007, bear in mind that in 2003 the UK had 25,964 restaurants. However, in 2006 the number stood at 26,629. That’s growth of less than a thousand, meaning there are a great deal of closures too.
The average price paid for a restaurant meal was £10.42 in 2007 which is only 0.4% higher than the year before. However, rising food prices may soon take its toll, and many restaurateurs will be forced to put prices up to maintain a healthy margin.
So what’s this industry worth? The British Hospitality Association estimates the number of meals served in the UK in 2007 to be worth £750m. So while there are a few words of caution to be taken from these statistics, there’s also the suggestion that it’s a big enough pie for you to have a small slice.
For a more detailed guide to starting a restaurant check out the Startups.co.uk book Starting Your Own Restaurant, available from Crimson Publishing and Amazon
