The restaurant market, particularly the casual dining market, has seen considerable growth recently: 1,800 restaurants opened in the UK during the 12 months to October 2015, a 6.9 per cent increase on the previous 12 months, according to our new research report looking at the sector.

The driving force behind this growth has been a shift in dining trends and consumer behaviour. Previously, casual dining establishments tended to be either in London, supported by affluent, young workers and a thriving tourist economy, or in shopping centres or leisure developments where dining forms a part of a wider evening out. In the past few years, however, there has been a shift to brands opening in more major city centres and affluent market town locations.

One of the key groups responsible for the boom is young people aged 18-24. With few financial commitments, 60 per cent of this age group eat out at least once a week, compared with 55 per cent of 25-34 year-olds and 30 per cent of the over 60s. These younger diners are very trend focussed, like to try new places and have wide culinary tastes. On the downside, however, they tend to lack brand loyalty so building a solid network of repeat customers is challenging.

Social media has become one of the key tools used to overcome this challenge. Casual diners, particularly those under the age of 34, tend to be very quick to pick up on new restaurant brands and are keen to share their experiences with their peers, usually via social media and especially Instagram.

Operators have therefore become more savvy and adept in how they reach and interact with younger diners online, and their success can be seen in how many people in younger age groups recognise their brands. Looking at a sample of casual dining brands (see below), most have roughly double the recognition factor among 18-34 year olds as they do among the wider population.

The recognition factor of casual dining brands

Of course, as the market has grown, more families and other demographic groups have become exposed and drawn towards these brands, bringing with them increased expectations of value, quality and consistency of service. In return, they are more likely to remain loyal to a particular brand.This should be reassuring to casual dining brands as it gives them a consistent customer base, even if their younger and arguably more fickle diners move on to the latest new restaurant launch.

Further information

Contact Savills Leisure Agency