Leisure Market Predictions 2014

January 20, 2014

The team at Davis Coffer Lyons – the UK’s leading leisure constancy – gives their predictions for the leisure market in the year to come.


• Increasing food and beverage to retail ratio in town centre developments as landlords look to exploit the virtues of having a cutting edge dining offer within their schemes.

• Proliferation of established pitches, which will lead to a wider range of innovative food and beverage locations – moving away from traditional ‘prime’ locations.

• Continued morphing of bars, restaurants and coffee shops within the same venue.

• Banking will improve and there will be more positive support for new openings and expansions as well as corporate acquisitions – this improvement may, however, be slow.

• Dynamic growth of suburban locations as bars and restaurants follow the residential boom as it spreads to previously underrated and under-served London suburbs.

• High rental bids from overseas tenants will put pressure on existing business’s outgoings leading to heavy casualties from UK leisure companies in the core Central London market.

• Leisure rents will continue to outperform prime office rentals in Central London.

• Investment yields for leisure property will drop further.

• Increasing number of leisure funds will manifest themselves.

• Rise in M&A activity in the casual dining sector.

• More development outside London – particularly in affluent towns.


• Growth of hybrid concepts that blur the boundaries in terms of traditional planning use classes – combining retail with grazing/limited dining and drinking.

• New wave of boutique wine bars in London, which provide a limited food offer and focus on specialist producers, attracting an audience with a genuine interest in wine.

• An increasing requirement for restaurants to describe the source of ingredients and nutritional content of their menus – especially in terms of sugar and fat content.

• Rise in the number of vegetable juice bars, which may in turn impact traditional fruit juice bars – possibly as part of campaign against sugar in take.

• An increase in the number of in-store catering concessions.

• More medium term pop ups i.e. anything up to three years.

• More Greek restaurants – many of which will combine an eatery with a deli element.

• Continued importance of street food and markets which have the power to pull large audiences to off pitch locations as well as to enliven areas and provide a worthwhile amenity – particularly areas with a high population of office workers.

• Changes in funding for entrepreneurial food businesses, harnessing social media for crowdfunding.

• Fatalities in the steak sector as operator numbers reach overkill levels.