Market overview and consumer trends

The UK food and beverage (F&B) sector continues to demonstrate resilience and evolution, despite shifting consumer behaviours and ongoing economic headwinds. Revolut’s monthly card spend data highlights sustained consumer engagement in leisure categories, with restaurant spending consistently over-indexing against the 2023 average.

Actual spend peaked in July 2025, reaching an index score of 129, 29% above the baseline. Seasonally adjusted figures have remained elevated since April, suggesting a structural shift in leisure demand rather than a temporary upswing.

Barclaycard sales growth in restaurants rose by 1.6%, although transaction volumes dipped slightly by -1.0%, indicating stable footfall but higher average spend per visit, likely driven by menu price inflation and upselling. In contrast, pubs, bars, clubs and takeaway outlets also saw revenue growth but experienced a decline in transaction volumes, implying that consumers are consolidating visits or shifting toward more premium, occasional experiences.

Store openings and franchise momentum

In 2025, F&B accounted for 20% of all store openings, with convenience-led F&B brands (cafés and takeaways) adding almost 1,300 stores to their portfolios as time-poor consumers seek convenience, affordability and variety. Greggs led with 120 net openings and, together with Costa, Starbucks and McDonald’s, accounted for around 20% of new F&B units.

Fast-growing QSR brands including Leon, Wingstop, Popeyes, Pepe’s Piri Piri, Honi Poke and Chaiiwala accounted for a further 17% of openings across 220 sites.

While established brands remain dominant, the number of smaller brands taking space increases every year, whether domestic or international in origin. There are currently an unprecedented number of active operators originating from the US, including Popeyes, Chick-fil-A, Carl’s Jr, Which Wich, Shake Shack and Dave’s Hot Chicken, supported by strong capital investment and hoping to replicate the growth seen by Wingstop, which will surpass 100 units this year.

With QSR sales expected to grow by 6% per year over the next decade, the rapid growth seen last year shows no signs of abating, and requirements for smaller 1,000–1,500 sq ft formats will aid this acceleration across most UK geographies. Franchising offers a lower-risk route to market for investors and entrepreneurs, especially amid economic uncertainty, while also helping to build scale at speed.

Sector challenges: CVAs and restructuring

Despite pockets of growth, the sector faces significant headwinds. Rising operational costs, inflationary pressures and changing consumer habits have led to a wave of Company Voluntary Arrangements (CVAs) and administrations.

Notable examples include Pizza Hut and TGI Fridays, both of which have undergone restructuring to reduce estate size and renegotiate leases. These developments underscore the need for agile business models and value-driven propositions.

Diversification and cultural influence

The rise of halal offerings has added a new dimension to the market. Brands like Maki & Ramen reported their best-ever opening with a halal site in Leicester, while Mr T’s, based in Yorkshire, generated £4,000 in revenue within the first two hours of opening in Ilford.

This trend reflects both cultural demand and the growing popularity of chicken-based menus over beef, driven by affordability, dietary preferences and broader appeal.

Changing consumer palates

With the emphasis returning to town and city centres for lunch options, as workers return to the office in their strongest capacity since pre-Covid, operators are capitalising on this demand by introducing a myriad of quick and healthy options to satisfy the ever-expanding consumer palate.

Quick and healthy F&B is back on the menu

Brands leading this growth include a mix of operators, but there is a continued emphasis on healthier F&B options as consumers become increasingly health-conscious, particularly as Gen Z enters the workforce and heightens demand for this offering.

A recent consumer survey by Barclays found that 27% of Britons say they are more likely to visit shops and restaurants that offer “healthier” options, increasing to 45% among those aged 18–24. Sought-after alternatives include zero-sugar treats (33%), organic or whole foods (29%) and low- or no-alcohol drinks (24%).

Although fresh, fast and healthy lunch options often come with a higher price tag due to the need for food to be prepared on site daily (increasing operational costs), consumers are clearly accepting this price point if it means receiving nutritious, tasty lunches. This perhaps rings particularly true for hybrid workers who frequent the office one to three days per week and so perceive spending more on lunch as less of an issue if it is not a daily occurrence.

Brands to watch

Across the UK, Asian-inspired chain itsu is looking to double its store estate, with a focus on strengthening its London offer in addition to its regional presence.

Other healthy F&B outlets have shared similar ambitions to expand, including Joe & The Juice, which has expressed that it sees potential to grow its store count into the hundreds in the UK, from its current total of just below 80. Recent openings include a new 2,685 sq ft flagship store on Cross Street in Manchester, marking the brand’s return to the city following a brief hiatus after the closure of its previous site in Debenhams in 2021.

Similarly, Atis, the sustainable, plant-focused salad and plate concept, continues to expand in London while also seeking organic growth regionally (pardon the pun), with Bristol, Manchester and Brighton on the agenda.

Other operators are eyeing expansion in the capital, including The Salad Project, which aims to reach 20 UK sites by 2028; Farmer J, which plans to open between six and eight more sites in London this year; and salad bowl concept The Salad Kitchen. It is clear operators are seeking to capitalise on the affluence of office workers and general lunchtime demand in London, coupled with changing dietary preferences towards fresh, healthy and convenient offerings.

Operators are also looking to franchise brands to accelerate store expansion programmes. Tossed, the healthy eating brand that currently has 13 sites, has recently signed its first franchise deal with Goldbean, aiming to expand to 50 UK sites within four years.

Regional growth

Despite recent growth heightening the F&B offer in regional cities, particularly with regard to healthier options, this growth is not a new phenomenon. Manchester, Leeds, Liverpool and Edinburgh have all experienced growth in F&B units of more than 50% over the past decade.

London’s growth, by contrast, has been more moderate, as the city has long possessed a heightened supply of F&B outlets, while the regions have gradually been catching up with the breadth of offer in the capital.

Gone are the days when a meal deal was the only lunch option. City centre F&B is evolving in line with consumer palates, and we may see options such as avocado smash becoming more readily available than ever before.

Case study: Manchester’s thriving food & beverage market: a new era of culinary excellence

Manchester’s F&B market has never looked stronger. Over the past decade, the city’s provision for F&B has doubled, with an additional 0.8 million sq ft designated for this purpose.

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, a further 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 are 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, one of the best performers in its portfolio.

Following this 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 planning 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-based and regional operators.

Demographic shift

Additional brands such as JKS Restaurants, Big Mamma Group, Din Tai Fung, Electric Shuffle and Pitch, alongside retailers including Subdued, Sephora, Represent, Ben Sherman and BYD, are all eager to tap into Manchester’s significant city centre population growth.

This growth includes an increasingly affluent demographic driven by economic expansion, international students and strong graduate retention. The demographic shift is also benefiting submarkets such as fine dining, which historically was more limited in Manchester.

Operators such as Mana, Higher Ground and Erst are now flourishing and deservedly made it into the UK’s Top 50 Restaurants in 2024. The newly opened SKOF in NOMA, by L’Enclume executive chef Tom Barnes, also earned a ‘One to Watch’ award and has already been placed in the Michelin Guide.

Increasingly luxurious leisure market

Expanding on this leisure trend, the St Michael’s development in the heart of the city centre will feature the first branded residence outside London, and the third in Europe, from W Residences.

Additionally, seven new hotels are currently under construction, a great barometer of 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 talent from around the world. As the city continues to evolve, it promises to offer even more for residents and visitors alike, further solidifying its position as a premier destination for food, drink and leisure.

_{Read the articles within Spotlight: UK Leisure Market 2026 below.}