Investor appetite for restaurants and bars will grow as the Manchester marketplace becomes even more competitive, a new report suggests.
New openings in 2013 will include the New York-style restaurants Meat Liquor and Meat Market, currently in Marylebone and Covent Garden, London, and the gourmet hot dog chain Primo’s.
The Restaurant and Bars Report 2012 from accountancy and business advisory firm BDO suggests that growing consumer demand for quality and a renaissance in burgers and quality fast food is leading to increased interest among deal makers.
Kieran Lawton, of BDO’s restaurant and bars team in Manchester, said: “Four years of recession have seen people focus on value for money, but that doesn’t mean they won’t pay a premium price for a quality product.
“Gourmet versions of authentic street food classics like burgers, hot dogs and chicken, and concepts like artisanal bakeries, have sprung up in the teeth of a recession, and people still queue around the block.
“Investors see a clever idea backed by strong, entrepreneurial management teams and they know they won’t be the only suitor. There are plenty of reasons to be optimistic about mergers and acquisitions in this sector next year.”
The BDO report says vendors still expect to achieve healthy multiples for high-quality concepts and businesses despite the current economic climate.
A spokesman said: “In addition, with private equity dependent on exit as well as investment opportunities, the number of PE-backed concepts in the sector lends weight to the argument that there will continue to be a healthy level of deal activity.”
Other trends identified by BDO include a reduction in the number of 'two for one' offers and more success for healthy chains, with more light options on menus.
