ELEVEN restaurants opened new premises in Glasgow last year despite the pressures of the coronavirus pandemic, new food and beverage sector research has revealed.
Savills said there was only the equivalent of four months’ worth of trading in 2020 as a series of lockdowns kicked in after March, but that eight eateries were launched in the second half of the year.
John Menzies, Savills director, said although this was a third less than the number of new openings seen in 2019 “it points to a market which has remained surprisingly active, with occupiers taking a longer term view of their trading prospects”.
Mr Menzies said that last year wreaked “an unprecedented year of disruption for the food and beverage (F&B) market which is set to continue well into the first quarter of the year as new lockdown restrictions become more protracted than expected”.
“Operators have effectively had to rely on four months of ‘normal’ trade over the last 12 months to support their business which has proved crippling for most operators,” he said.
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“In Glasgow, among those affected are well known operators including Zizzi, Handmade Burger Co, Gourmet Burger Kitchen, Las Iguanas, Carluccios, Bella Italia and Grill on the Corner. Some of these brands have survived through company restructuring while others have disappeared, resulting in rising vacancy rates in the city centre.”
The majority of the openings were city-based businesses, with “90% of these new openings came from local rather than national chains”.
Mr Menzies said highlights include Mamasan which opened their South East Asian inspired restaurant on Ingram Street, Japanese operator Mikaku which opened on Queen Street and Bread Meats Bread which relocated to larger premises in December on St Vincent Street.
He said that rents in the first half of the year will remain under acute pressure and expected to track at about 50 per cent of their pre Covid-19 levels. He added: “With the current positivity surrounding the vaccination programme, by the end of 2021 there could be a recovery in rents to approximately 75% of pre pandemic levels. With disposable income expected to be curtailed in the medium term, a recovery to pre-pandemic rent levels is not anticipated.”
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He also said tenant demand will be strong for fitted restaurants in the city centre this year. “There are interesting signs of life in this area – for example one fitted Glasgow City Centre restaurant Savills has recently marketed received four offers within four weeks of launching to the market. Attracted by the significantly lower set up costs and the chance of attractive lease terms, 
“Some operators to watch out for in Glasgow this year are Maki & Ramen, Wolf, Scoop Restaurants, Mowgli, Innis & Gunn, Boom Battle Bar, Heavenly Desserts, Ting Thai Caravan, Lemongrass Group, Tony Macaroni and Cosmo.”
Mr Menzies also said development activity is coming on stream which will change the dynamic of the market in the city centre this year, and "top of this list is St Enoch, where a new leisure and restaurant quarter is set to open in the spring," while "COP26 will provide a boost for food and beverage in the fourth quarter," which “could give the F&B sector a real boost and points to the potential for the latter part of 2021 to be in sharp contrast to the start of the year”.
He added: “Finally, through turmoil comes opportunity. For occupiers who are prepared to accept a degree of risk given the pandemic, 2021 is arguably a time of real opportunity.
"There are prime restaurant opportunities available to lease, and landlords are offering attractive lease terms to help kick start the market. For the brave among us, 2021 could be the year to make these big decisions.”
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