Last year, the turnover of the UK restaurant industry hit £21.6 billion, rising by 39% from £15.5 billion since the recession, according to our latest research.
The growth of the industry is being driven by a wave of new restaurant start-ups, pop-ups and expansions of smaller chains, such as Franco Manca, Chilangos, Wahaca and Honest Burgers.
Many of these new businesses are now investing heavily in their assets, kitting out new kitchens and restaurant interiors in a bid to win customers. The value of restaurants’ kitchen equipment, fixtures and fittings has risen by 33% from £4.2bn in 2010 to £5.5bn in 2014. To fund this investment, many restaurateurs are now becoming aware of the benefits of alternative finance.
For those looking to invest, leasing is a great option; it allows businesses to get the equipment they need immediately whilst being able to spread the cost over a period of time. The flexibility can help win customers in what has become a competitive market.
We have recently worked with establishments throughout the UK to fund their plans for growth and we aim to increase the funding we provide to restaurants. We are able to fund a broad spectrum of capital expenditures, including a range of specialist kitchen equipment, furnishings and IT systems.
Peter Alderson, LDF Managing Director, says: “The restaurant industry is seeing a huge increase in demand for funding as it continues to benefit from the knock on effect of the economic recovery and low inflation.”