Profitability nearly halves across UK’s top 100 restaurant groups

The UK’s top 100 restaurants groups recorded a 44% slump in profits to £204m over the last year, down from £365m the previous year, according to data compiled by accountancy firm UHY Hacker Young.

The research compiled results from operators including Loungers UK (Cosy Club), the Restaurant Group (Wagamama and Barburrito), Lemon Pepper Holdings (Wingstop UK) and Gordon Ramsay Restaurants (Bread Street Kitchen, Street Pizza and Street Burger).

Figures filed until 30 June 2026 showed that the drop in profitability came despite a 3% rise in cumulative turnover to £13.3b during the period.

Martin Jones, partner at UHY Hacker Young, attributed the move to rising employment costs, which have “absorbed all the benefits of increased turnover and then some”. He added that food price volatility had exacerbated pressures on operators, singling out olive oil, beef, chocolate, coffee, eggs and pasta as ingredients that have all easily outstripped broader inflation.

“A lot of individual restaurant companies are showing they can attract customers, but turning those sales into profit has become far more difficult,” said Young.

“Many operators are now finding that simply getting more people through the door is no longer enough. They have to work much harder to protect already thin margins.”

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