Vacant Physical Retail Space Allows UK Fast Food Sector to Boom

The pandemic has impacted industries in many different ways over the last year and changed consumer habits. Food is one area that has changed drastically, with a boom in fast-food while restaurants, pubs and cafes have been devastated by the pandemic and restrictions in place. As a result of this, fast-food chains are aggressively expanding in the UK by capitalizing on the vacant high street spaces left by retail businesses.

Aggressive Expansion

Fast-food chains are eager to rapidly expand their foothold and capitalise on the growing UK demand for fast-food in a time where people are unable to go out to eat. Restrictions are set to ease in the coming months which will see restaurants and other dining establishments enter the fray once again, so it will be interesting to see how this affects fast-food sales when you consider the pent-up demand over the last year.

New Opportunities & Falling Rent Prices

With 1 in 6 casual dining restaurants shut in 2020 along with the administration of enormous retailers like Arcadia, it has opened up new opportunities for the UK fast-food market with landlords desperate to find new tenants and drops in property prices – rents have fallen by as much as 40% in some places. While now could be a smart time for a fast-food business to expand into a retail space, there are many important considerations to make. The future also remains unclear, which is why fast food insurance is essential for any company in this industry.

New & Returning Chains

This growth is predominantly seen by overseas chains that see the UK as an attractive market, such as Filipino fried chicken group Jollibee Foods Corp, which has plans to invest £30 million to open 10 new outlets in 2021 and up to 15 more the following year. Doner Kebab of Germany claims to be the UK’s “fastest-growing” chain with plans to open between 47 and 49 new outlets this year while Fireway, Wingstop and Wendy’s are amongst the names looking to aggressively expand in the UK.

Changing Trends

The growth in demand for fast-food also means that consumer trends are changing and people are no longer content with options limited to McDonald’s, KFC and Burger King. Vegan dining and sustainability have emerged as major trends in the food industry in recent years and this will likely pick up again once the pandemic has ended.

Sustainability

This means that these major chains will also need to make adjustments moving forward in terms of their menu options as well as taking steps like eliminating the use of single-use plastics and introducing reusable cups. Sustainability has taken a backseat during the pandemic due to obvious concerns over transmission and hygiene, but once the pandemic has ended, this will be a key issue that all dining establishments will need to consider.

There is aggressive expansion happening by fast-food chains looking to capitalise on the growth in demand for fast-food and it will be interesting to see how these businesses fare once restrictions begin to ease and pent-up demand for restaurant dining surfaces.