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UK restaurant takeovers up 88% – what this means for owners and investors

Takeover activity in the UK restaurant sector has risen sharply in the past year, with deals increasing by 88% according to recent TWM research. This wave of consolidation is set to continue – particularly in the fast and fast-casual end of the market – driven by improving investor confidence, lower interest rates, and falling commercial rents.

30 September 2025

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David Powell

Partner and Head of Business Law

So, what does this mean if you are an owner thinking of selling, or an investor considering entering the market?

Why takeover activity is rising

Several factors have created a favourable environment for restaurant transactions:

Falling rents and more flexible leases – making prime locations like central London more accessible
Lower equipment costs – after pandemic-era peaks, set-up costs are now more manageable
Post-Covid restructuring – many groups have streamlined operations, leaving them leaner and more profitable.

Together, these changes have made restaurants a more attractive and scalable investment.

What this means for restaurant owners

For business owners, this trend is a sign that confidence in the sector is returning and reflects how investors are repositioning for long-term shifts in consumer behaviour. If you are considering an exit, now may be a good time to explore options, with competition among buyers on the rise. Even if a sale is not on the horizon, understanding how investors are valuing businesses can help shape your future strategy.

Opportunities for buyers and investors

For buyers, the current environment offers the chance to acquire potentially undervalued or scalable businesses. Consolidation also brings operational benefits, such as spreading payroll and overheads across a wider portfolio.

With turnover among the UK’s top 100 restaurant groups rising 19% to £12.9bn in 2024/25 and profits up 18% to £365m, the sector’s financial outlook is strong.

How TWM’s Corporate and Commercial team can help

At TWM, we regularly advise both buyers and sellers in the hospitality sector. Whether you are looking to sell your restaurant group, exploring acquisition opportunities, or want to understand how best to prepare your business to attract investment, our team provides clear, practical, and cost-effective guidance to help you achieve your goals.

Recognised in The Legal 500 for our corporate and commercial expertise, we combine city-quality advice with regional value. If you would like to discuss your plans, please get in touch with our Corporate and Commercial team.