London restaurant openings rise – but closures rise faster
The number of restaurants opening in London rose during the first half of this year – but a larger leap in closures illustrates the tough trading conditions operators face.
There were 137 openings in the period, according to real estate advisory Robert Irving Burns, analysing data from restaurant review site Hot Dinners. That figure is up by 6% from 129 a year earlier. During the same period, 33 restaurants shut down, more than double the 13 from the first half of 2023.
High costs were one of the major factors contributing to closures. As rents in prime central London increase, more than half of new restaurants are now opening outside traditional central areas, where rents are lower.
The number of restaurants opening in London rose during the first half of this year – but a larger leap in closures illustrates the tough trading conditions operators face.
There were 137 openings in the period, according to real estate advisory Robert Irving Burns, analysing data from restaurant review site Hot Dinners. That figure is up by 6% from 129 a year earlier. During the same period, 33 restaurants shut down, more than double the 13 from the first half of 2023.
High costs were one of the major factors contributing to closures. As rents in prime central London increase, more than half of new restaurants are now opening outside traditional central areas, where rents are lower.
The proportion of openings in the W1 postcode, covering Mayfair and Marylebone, dropped to 19% from 26% last year, while the percentage in the City and Shoreditch increased from 4% to 10%.
Notable openings included Engel & Jang at the Royal Exchange, EC3, a Japanese/Korean restaurant opened by Des Gunewardena, former co-founder of D&D. Upcoming openings include BoxHall, a 17,000 sq ft food hall near Liverpool Street Station, EC2, that will bring 16 pop-up restaurants this winter.
Antony Antoniou, chief executive of Robert Irving Burns, said: “London’s restaurant scene has proven remarkably resilient in the face of economic headwinds, which has sustained demand for grade-A commercial space in prime central areas such as Mayfair and Marylebone. However, the majority of new openings have been outside of the key premium hotspots such as Mayfair. The high rents in these locations are pricing out many of the new restaurants and leading businesses to pursue a different strategy, with some targeting the more residential working from home and weekend trade.”
Gavin Hanly, co-founder of Hot Dinners, said: “The West End still attracts the biggest names in the business and it looks like the City is making a comeback. However, things are changing and some less central areas, particularly Notting Hill and Canary Wharf, are seeing more high-profile openings than ever.”
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