Restaurateurs look to take advantage of higher prices
A NUMBER of Manchester’s city centre restaurants have been put on the market.
The owners of Marsden St-based venue bar/restaurant Bacchanalia have put the business on the market with business sales agent Kings Business Transfer, with an asking price of £199,950 being placed. The 70-cover unit claims takings of around £13,500 per week and is being sold on a leasehold basis.
Meanwhile, the former Luso restaurant on Bridge Street has also been placed on the market with Blacks Business Brokers with an asking price of £189,995. The restaurant closed back in January after its owners struggled to turn the business around following an earlier administration.
Property agency Christie & Co, which currently has celebrity chef Simon Rimmer’s Hale-based restaurant Earle on the market for £165,000 as well as the Simple bar/restaurant on Tib Street in the Northern Quarter, recently published its Business Outlook survey which showed that restaurant valuations actually increased by 5.6% last year.
However, it said that much of the positive growth that had been achieved in the sector had come through promotional activity carried out by branded operators.
The firm’s head of restaurants, Simon Chaplin, said: “Whilst established casual dining brands led the market, small independent operators have found it hard to compete.
The firm predicted a challenging year ahead for 2011 as VAT increases put greater pressure on discretionary spend and food inflation continued to rise.
Despite this, the firm said that it expected restaurant valuations – which dropped by 19% in 2009.
“The long-term outlook for the sector is very positive and we are optimistic that the renewed momentum in the transactional market will be maintained,” he said.
