Restaurants performing better than rest of sector, says report

30 July 2002 by
Restaurants performing better than rest of sector, says report

Restaurants are performing better than the rest of the hospitality sector, according to a report from the Restaurant Association out today.

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The Restaurant Industry Gold Standard report says that the average return on capital - how much profit is made on the total amount of money put into a company - in the restaurant industry is 5.4%.

This compares with a return of 4.7% in pubs and bars and of 3.4% in hotels. Some restaurant operators are reporting returns as high as 24.2%, says the report.

More than half of restaurateurs surveyed said they believed that the next 12 months would be better for the industry, with more than two thirds saying it would be better for their own restaurant.

Despite a skills shortage and labour costs being major concerns for the industry, more than 70% of restaurateurs said they would recommend working in the business and 70% expected to be working in the industry in five to ten years' time.

The report predicts that in 2006 restaurants will be serving more than 1.8 million meals, worth more than £8b in food sales. Last year the industry dished out 1.7 million meals, worth £7.7b.

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