Restaurants are closing at a rate of 2% annually
Big store closures of chains may be getting the media excited, but small family restaurants appear to be hardest hit in the latest rounds of closure. The bulk of recent closures are from independents according to the new edition of the Market Growth Monitor from CGA and AlixPartners.
Family-owned Chinese, Indian and Italian restaurants have taken the biggest hit, and while a number of large chains have had to re-trench, the bigger chains are actually doing much better. CGA vice president Peter Martin said “bulk of closures are from independents, while managed groups remain in growth and this trend is welcome news for some of them, since it eases over-capacity and frees up more property. But these figures are a reminder that all restaurant brands need a well defined and brilliantly executed offer if they are to succeed in a survival of the fittest in 2019”.