Scotland`s largest city experienced a turbulent 2021, with Covid-19 having a now well documented impact on the evening economy.
There is however a paradox at play in Glasgow, with the property market and desire among food and beverage (F&B) operators to open new premises bearing little relationship to the trading picture. Savills research shows that in 2021, 17 new F&B outlets opened in Glasgow city centre, an increase of 54.5 per cent from 2020 and – more tellingly – an increase of 6 per cent from 2019.
The market is clearly betting on an improving picture, with operators taking a longer term view of their business prospects, demonstrating a strong vote of confidence for Glasgow, which remains well placed to bounce back strongly.
Looking at 2021, the independent F&B operators in Glasgow once again came to the fore, with 10 local brands opening in the city centre. Highlights include Namaste by Delhi Darbar in the St Enoch Centre, Ting Thai Caravan on West Nile Street, Roberta’s on St Vincent Street and Abandon Ship Bar on Mitchell Street. Local entrepreneurs seized the chance to acquire available properties, and they have found landlords – many of whom have been stung by national chain defaulters – willing to talk.
Notwithstanding the above, national operators were still a feature in 2021, with seven new openings. Notable additions included Franco Manca who opened their doors on Mitchell Street, Doppio Malto in George Square, 63rd+1st on Bothwell Street, and Nandos opened its latest restaurant in the St Enoch Centre.
Turning to 2022, Savills six predictions for the Glasgow F&B market this year are:
1. National brands are making a comeback and we anticipate the scales will tilt back in their favour. We are seeing an increasing number of property requirements, with the likes of Rosa`s Thai, Popeyes, Cote, Giggling Squid and The Real Greek all assessing the city centre.
2. It won`t all be about restaurants opening. We expect to see a number of bar operators open in 2022 including Innis & Gunn, who plan to open an exciting new taphouse in the summer.
3. High profile national arrivals. We predict the arrival of some really high profile national brands in Glasgow this year – potentially including some genuine game changers for the city.
4. F&B rents set to rise in 2022. From a peak of £40 per sq ft before Covid-19, rental values halved in 2020, only to recover to 80 per cent of their pre Covid-19 level in 2021. We expect them to rise back to £40 per sq ft this year the best located and configured properties.
5. Retail and leisure to work together on prime shopping streets. F&B operators are making welcome inroads into our prime shopping streets and we will see operators opening on the likes of Buchanan Street and Gordon Street. Here, planning policy (which has historically prohibited non-retail uses) looks very outdated as a mixed-use approach will be critical to Glasgow`s recovery. We expect applicants to be successful as Glasgow has to be open for business.
6. 2022 will be a big year for entertainment operators. We will see an increase in brands linking an F&B offer to their own fun and games offering. Flight Club, Gutterball and Boom Battle Bar are all committed to open in Glasgow, offering a welcome range of experiences for the city centre.
Further information
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