Independent F&B operators drive 90% of Glasgow’s new openings in 2024
Glasgow city centre saw its highest volume of F&B transactions in more than six years in 2024, with 34 new openings, a 25% increase from 2023.
Almost 90% of the new openings were by local independent operators, a notable shift from 2023 when local and national chains were equally split, according to Savills.
Glasgow continues to be a prime location for F&B operators, with the fourth-largest catchment population of any UK city outside London and the largest in Scotland.
Glasgow city centre saw its highest volume of F&B transactions in more than six years in 2024, with 34 new openings, a 25% increase from 2023.
Almost 90% of the new openings were by local independent operators, a notable shift from 2023 when local and national chains were equally split, according to Savills.
Glasgow continues to be a prime location for F&B operators, with the fourth-largest catchment population of any UK city outside London and the largest in Scotland.
John Menzies, director at Savills Scotland, said: “We are still often asked how operators are trading post-pandemic and Glasgow remains in a recovery phase. The trading picture is symptomatic of this with some districts feeling the lingering effects of disruption more than others.
“However feedback from many national operators who have prime sites in Glasgow put the city in the top 10% of their UK bar and restaurant portfolios, measured by both turnover and profit margin. Some have even reported that turnover is now in excess of 40% above pre-Covid levels. Granted, this growth has been essential for occupiers to offset sharply rising operational costs, but this remains a clear signal of the underlying strength of the local market.”
Looking ahead to 2025, businesses will face challenges due to the national insurance hike from the October Budget and reduced consumer spending. However, these pressures may be somewhat alleviated by a smaller-than-expected increase in the minimum wage.
Despite this, profitability could be affected, particularly for less financially secure operators, who may struggle, especially in the challenging first quarter of the year.
That said, national operators are also expected to make a comeback in 2025. One such example is Dishoom, which is set to open later this year on Nelson Mandela Place, with Savills advising the landlord.
“Occupier demand for the very best F&B properties in Glasgow will continue to be strong in 2025. However, supply of good quality sites remains limited and as a result we expect to see rents increase by around 20% by the end of the year.
“In contrast, we expect to see less growth in the secondary market where rents have become more affordable. Overall, though, things are looking more positive than the headlines may lead us to believe,” Menzies said.
Image © Jason Briscoe/Unsplash
