Glasgow City Centre sees boom in food and drink openings in 2024

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Glasgow city centre has seen a remarkable rise in food and beverage (F&B) activity in 2024, with 34 new openings – the highest number in over six years,  according to Savills. This represents a 25% increase compared to 2023 with nearly 90% of these new venues run by local independent operators, marking a shift from 2023 when the split between local and national/chain brands was almost the same.

Key openings include Margo and Sebbs, both from Scoop Restaurants, located on Miller Street – now one of the city’s most improved F&B locations. Independent operator Marco Lazurri also launched The Last Bookshop on Hope Street, bringing a welcome boost to the area.

Glasgow remains a top destination for F&B operators, thanks to its large catchment population – the fourth largest in the UK outside London and the biggest in Scotland, according to Geolytix. The city also retains its status as the UK’s top shopping destination outside London, with Buchanan Street attracting 16 million visitors annually, according to MyTraffic. This footfall, combined with Glasgow’s significant student population, makes it a prime location for operators targeting diverse customer groups.

John Menzies, director at Savills Scotland, commented, “Glasgow is still recovering from the pandemic, with some areas feeling the effects more than others. However, many national operators with prime sites in the city report that Glasgow is in the top 10% of their UK portfolios for both turnover and profit margins. Some have even seen turnover rise over 40% above pre-Covid levels. While this growth has helped offset rising operational costs, it also highlights the strength of the local market.”

Looking ahead to 2025, Savills predicts that businesses will face challenges, including the national insurance increase announced in the October Budget and more cautious consumer spending. However, the lower-than-expected rise in the minimum wage may provide some relief. Despite this, profitability could be squeezed, particularly for less well-financed operators, especially during the tough first quarter of the year.

National operators are expected to make a comeback in 2025, with Dishoom leading the charge. The popular Indian restaurant group, which has seen success in Edinburgh, is set to open on Nelson Mandela Place later this year.

Menzies added, “Demand for the best F&B locations in Glasgow will remain strong in 2025, but supply is limited. We expect rents for prime sites to rise by around 20% by the end of the year. In contrast, the secondary market will see less growth, with rents becoming more affordable. Overall, the outlook is more positive than headlines suggest. For example, we’re seeing significant interest in the 25,000 sq ft unit at 30 St Vincent Place, one of the best F&B opportunities Glasgow has ever seen.”

Despite challenges, Glasgow’s appeal as a vibrant hub for food and drink shows no signs of slowing down.

 

Category: Bar & Pub, News
Tags: food and beverage, Glasgow City Centre, John Menzies, ocal independent operators, Savills