Close

Choose your country

Or view all businesses for sale

Worldwide

Sell Your Business

Restaurants at risk of debasing their brand says food consultant

pizzaexpress

Restaurants are in danger of devaluing their brand through price promotions, warns a leading food service consultant.

Peter Blackman, managing director of Horizons, has expressed his concern that two-for-one and other discount deals undertaken to counter the effects of recession will be "difficult and time-consuming to get out of".

Writing for the Times, Blackman acknowledges that the profusion of special offers in the sector over the past 18 months has helped mitigate the impact of the recent downturn. Previously the restaurant sector has been seen as particularly vulnerable in times of recession, but this view has been revised somewhat, Blackman surmises, because "eating out is now so entrenched in the British way of life that consumers are reluctant to give it up".

These deals have become an accepted and reliable way for mid-spend restaurants to build consumer traffic in quiet times, but they have now been around for more than 12 months and their currency is in danger of becoming debased

Peter Blackman, food service consultants Horizon

Discounts and other special offers have been adopted by mid tier brands such as Pizza Hut, Pizza Express and Zizi to enable cash-strapped Britons to sustain the frequency of their restaurant visits, if not the amount they spend in each visit. Even high-end restaurants have deigned to target a lower price tier, often offering midweek discounts.

With the economy emerging, albeit anaemically, from recession, it's time for the trade to move away from heavy discounting, writes Blackman. But this could be tricky given consumers have become accustomed to discounts across the sector.

"These deals have become an accepted and reliable way for mid-spend restaurants to build consumer traffic in quiet times," says Blackman. "But they have now been around for more than 12 months and their currency is in danger of becoming debased.

"Restaurant chains have got themselves into a tight corner over discounting that is likely to be difficult and time-consuming to get out of. And with so much competition on the high street between broadly similar outlets, it would take a brave operator to put an end to price promoting when the competition continues to discount."

Read Peter Blackman's article in the Times

If you enjoyed this article, sign up for a *free* BusinessesForSale.com account to receive the latest small business advice, features, videos and listings directly to your inbox!


Subscribe to our email updates

Sign up to receive the latest advice, most popular businesses, special offers and much more.

I'm interested in


BusinessesForSale.com is committed to protecting your privacy. We will use the information you provide on this form to send you marketing emails . Find out more about what we do with your information in our Privacy Policy.
Marketing Emails: You will receive newsletters, advice and offers about buying and selling businesses and franchises. We will also send you information about events relating to buying, selling or running a business.

Are you a Business Owner?

Set up your Private Seller Account and create your listing today

Get Started Here

Are you a Business Broker?

Set up your BrokerWeb Account and list multiple businesses

Get Started Here