‘Investors hungry for food chains’

A REPORT by the accountancy group BDO suggests there will be a strong appetitite among investors for businesses in the restaurant and bars sector next year.

Its Restaurant and Bars Report 2012 predicts modest growth will fuel demand in the sector, with particular growth in  “fast casual” – a new term to describe restaurants that do not offer table service but aspire to higher levels of quality than traditional fast food.

Last week the Business Growth Fund invested £2.5m in Manchester-based fruit juice chain Boost and has already invested in Barburrito, also in Manchester.

Kieran Lawton, pictured, who works in BDO’s restaurant and bars team in Manchester, said: “Four years of recession have seen people focus on value for money, but that doesn’t mean they won’t pay a premium price for a quality product.

“Gourmet versions of authentic street food classics like burgers, hot dogs and chicken, and concepts like artisanal bakeries have sprung up in the teeth of a recession and people still queue around the block.

“Investors see a clever idea backed by strong, entrepreneurial management teams and they know they won’t be the only suitor. There are plenty of reasons to be optimistic about the M&A in this sector next year.”

In 2013 the restaurants Meat Liquor and Meat Market, currently in Marylebone and Covent Garden, London, are due to open in Manchester. Gourmet hotdog chain Primo’s will also open in the city.