Despite a tough trading environment for the hospitality industry, new Companies House data analysed by independent finance broker Charles & Dean reveals 8,196 hospitality businesses have opened in London between 6th July 2022 and 5th July 2023, demonstrating positive momentum for the sector.
Charles & Dean’s analysis, conducted as part of its Feeding Growth for F&B 2023 Report, has uncovered the London boroughs with the most openings – with Hackney, Westminster and Islington taking the top three spots. Barking and Dagenham (79), Kingston upon Thames (75) and Sutton (24) had the fewest openings in the capital, however.
The analysis additionally found takeaways and food stands claim the top spot as the most popular type of food and drink business to open, making up just under 1 in 3 (32%) of all openings since July 2022.
Licensed restaurants were the second most common business to open (25%), followed by unlicensed restaurants and cafes (21%) and event catering businesses (17%). Just 5% of hospitality businesses that opened were pubs and bars.
2Tom Perkins, Director and Co-founder, Charles & Dean, said, “It’s clear that London has always been a hotspot for the world’s best hospitality, but firms can often struggle to get the finance they need – both to open and also to embark exciting ventures like refurbishments and expansions further down the line.
Hospitality businesses are often sidelined by traditional lenders, but looking beyond the traditional channels of overdrafts and fixed term loans can reveal a wealth of finance options available.
“An example is the Business Cash Advance (BCA) which is perfect for businesses like restaurants that have uneven cash flow due to seasonal fluctuations in revenue. These alternative options can open new channels for obtaining finance and can empower hospitality businesses across the capital to thrive and meet their ambitions as they look to make their mark on the city.”