When it comes to eating out, consumers, now more than ever, are looking for a diverse range of options and operators are responding to this growing demand.

Most leisure occupiers look to open in London first, but the strength of the A3 market has really grown over the past 12 months as we see a number of these brands take their concept outside the capital and into the wider UK markets.

Itsu for example, opened in Chelsea in 1997, tapping into the rising demand for Japanese cuisine. The company has since opened 50 stores in London, and decided last year to start looking at other key UK locations. It opened its first regional store in Oxford in November 2014 with great success and further regional openings will include Cambridge, Leeds and Reading.

Other examples of expanding leisure occupiers include Five Guys, Burger and Lobster, The Breakfast Club and Meat Liquor, with openings in cities such as Manchester, Leeds, Cardiff and Brighton.

With consumer confidence strengthening, this trend has also been seen in the retail market with retailers looking to follow the likes of Apple, Victoria’s Secret and Hollister to locations outside London.

Some question whether London brands can be successful outside the capital, since many of them have higher price points than exist locally. However, the examples mentioned have been profitable due to each new location having been carefully picked to complement the brand. The recession has certainly taught occupiers it’s not about the quantity of stores but the quality and by that I mean the best locations, which guarantee the footfall from their targeted demographics. Key factors include large office populations, good transport links, and a student population.

With new operators continuing to look for space on the high street, and willing to pay market rents to be in the best locations, I can’t see this growth in the leisure market slowing down any time soon.

Further information

Contact Savills Property Management.

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