Top 100 UK restaurant groups’ profits surge 18% to £365m

The UK’s Top 100 restaurant groups’ profits have jumped 18% over the past year to £365m as of 30 June 2025, up from £308m during the same period in 2023/2024, according to accountancy group UHY Hacker Young.

Collective turnover also grew in the last year to £12.9b from £10.8b last year – a 19% rise.

The increase in growth and profitability follows several years of cost-cutting in the sector, with many operators having to reduce their headcount.

Growth has been particularly strong in the fast food and casual dining segments. Burger and steakhouse chains like Flat Iron Steak, which was recently acquired by TriSpan and McWin, have enjoyed some of the largest increases in turnover, as consumers look for affordable but quality dining experiences.

Martin Jones, partner at UHY Hacker Young, said: “After years of challenges and despite an extremely tough trading environment the UK’s restaurant sector is showing a strong turnaround in profitability.

“Whilst many chains are still suffering from depressed margins and weak demand there is enough innovation and expansion going in the top 100 to deliver better results.”

He cited operators embracing new technologies as one of the key reasons for the uptick, including investing in touchscreen ordering in fast food outlets to reduce reliance on increasingly expensive labour.

Other beneficial technologies look to be mobile apps to allow customers to easily manage bookings, orders and offers; and data tools which more accurately forecast sales and manage stock to ensure kitchens can meet demand and cut wastage.

The accountants also pointed to many groups upgrading offerings in order to increase menu prices to offset food inflation – in some cases improving margins, as well as developing more innovative menus to keep customers engaged.

Furthermore, some chains have boosted their bottom lines by signing exclusive partnerships and offering exclusive menu items with delivery companies like Deliveroo and Just Eat.

Jones added: “Within some segments of the restaurant sector, like the new wave of pizza outlets, private equity money seems to be returning.”

However, he warned that there are “obvious clouds on the horizon – a massive increase in employers’ National Insurance and a continued ramping up of the Minimum Wage creates a major threat”.