BCSC 2015: Increased demand for restaurant space in Manchester has pushed top rents in prime locations to £40-£50 per sq ft in Q3 2015, compared with £30-£40 per sq ft in 2011.
Research from Savills shows that 30 new restaurants have opened in the city since BCSC last hosted its conference in 2011, pushing up rents, which can now exceed £60 per sq ft at small strategic sites.
There are now 140 restaurants in Manchester, 22% of them occupied by new market entrants, including Hawksmoor, Burger & Lobster and Iberica.
John Agnew, retail director at Savills, said: “Around one-third of all new retail and leisure entrants in the city over the last four years have been restaurant brands, many of which did not have a presence outside of London last time we hosted BCSC.”
According to Savills, Deansgate, Corn Exchange, Spinningfields and King Street are among the most attractive Manchester locations for major restaurant operators, while independents continue to favour the Northern Quarter.
Improvements to other city centre zones, such as Peter Street, Oxford Road and Piccadilly Gardens, have resulted in some players taking multiple units in the city centre, such as Byron, which now has restaurants in Deansgate, Piccadilly Gardens and Corn Exchange.
When it is completed later this year, the redeveloped Corn Exchange will be home to a boutique hotel and a further 13 restaurant brands, eight of which are new to Manchester, including Pho and Wahaca.
Tom Whittington, retail research director at Savills, said: “Manchester’s restaurant offer is becoming increasingly cosmopolitan, with international entrants and street-food offers gaining significant traction. We classify around one-third of the recent influx of restaurants as aspirational rather than mass market.
“These changes indicate that the city’s casual diners are developing more sophisticated eating habits and are also willing to increase their spend per transaction.”
• For a full-round up of news from BCSC 2015, visit www.egi.co.uk/news/estates-gazette-bcsc-2015-round-up
