Restaurant sector set for M&A feeding frenzy
The restaurant sector is likely to be attractive to private equity investors in 2012, a new report from BDO has claimed.
According to the company's Restaurant and Bars Report, chains such as Pizza Express, Giraffe, Yo! Sushi and Jamie Oliver's will be attractive to private equity ahead of a predicted upsurge in 2013.
Roger Buckley, corporate finance partner at BDO in Birmingham, said PE houses with "loads of money" would be eying a sector that remains "part of the fabric of our society".
"The difference is when people do go out now, they are more demanding about the quality of the experience they receive," said Buckley. "Tired venues serving overpriced food are living on borrowed time but the chains that are thriving will continue to do so next year.
"Food prices are starting to fall and many high street landlords see food and drink businesses as a safer bet than retailers. The good operators are in a great position for when financial pressures start to ease in 2013 and consumers start to feel they have more disposable income.
"This makes them a very attractive prospect – especially if they have a concept that is proven to work outside the capital."
