In 2023, more than 162,000 sq ft of new retail and leisure space was completed, representing a 12% increase from 2022 and a 52% increase from 2021. Currently, another 381,000 sq ft is under construction, with a significant portion dedicated to F&B and leisure space.

Strength of independents

Despite this growth, not all leisure businesses that open manage to stand the test of time, or they may have a natural shelf life. We’ve seen certain casual dining operators fail, and brands seeking favour in Manchester need to learn to project the charm of an independent operator, even if they’re not one. We know that independent F&B accounts for 80% of operators in Manchester, as it is often the alternative brands that capture local consumers. For instance, Onda recently opened its first permanent restaurant at Circle Square, resonating with the local palate, following a successful pop-up at The New Cross.

Demand from London-based and international brands

London-based and international brands are increasingly looking to Manchester, following the success of The Ivy's Spinningfields venue, a best performer in their portfolio. Following the trend, Sexy Fish, Soho House, Flat Iron, House of AP, Blacklock, Lina Stores, and Miami-based Chotto Matte have either recently taken space or are planned to do so, ready to pay premium rents. Manchester has clearly propelled itself into second place on a metaphorical UK leaderboard in terms of current occupier demand from international, London, and regional operators.

Demographic shift

Additional brands such as JKS Restaurants, Big Mamma Group, Din Tai Fung, Electric Shuffle and Pitch, plus retailers such as Subdued, Sephora, Represent, Ben Sherman, and BYD, are all eager to tap into Manchester’s significant city centre population growth, which includes an increasingly affluent demographic due to economic growth, international students, and strong graduate retention. This demographic shift is also benefiting submarkets, such as the fine dining market, which previously struggled in Manchester. Now, operators such as Mana, Higher Ground, and Erst are flourishing, deservingly making it to the UK’s Top 50 Restaurants in 2024. The newly opened SKOF in NOMA, by L’Enclume executive chef Tom Barnes, additionally earned a 'One to Watch' award and is already placed in the Michelin Guide.

Expanding leisure market

Expanding on this leisure trend, the St Michaels development, in the heart of the city-centre, will feature the first branded residence outside of London, and the third in Europe from W Residences. Additionally, seven new hotels are under construction, a great barometer of the increasing confidence in the market and a sign that overnight stays are becoming increasingly intertwined with Manchester's entertainment and business economies.

Manchester's F&B market is not just growing; it is thriving, becoming more sophisticated, and attracting some of the most exciting culinary and retail talents from around the world. As the city continues to evolve, it promises to offer even more for residents and visitors alike, solidifying its place as a premier destination for food, drink, and leisure.

Further information

Contact Jack Wagland or Tom Whittington

Savills Retail