Takeover Deals For UK Restaurants Up 88% In Past Year

The number of takeover deals targeting UK restaurant groups has increased 88% in the past year according to analysis by leading South East law firm TWM Solicitors. The sector saw 30 deals in 2024/25, up from 16 in 2023/24.

TWM Solicitors says that a combination of lower interest rates, improving investor confidence, and falling commercial rents has created a favourable environment for mergers and acquisitions in the restaurant sector. The Bank of England lowered the base interest rate to 4% in August 2025.

TWM added that the surge in M&A activity comes despite challenges to the sector such as the recent rise in employer National Insurance Contributions (NICs).

David Powell, Partner and Head of the Corporate and Commercial team at TWM Solicitors, comments:
“The near doubling of takeover deals is a strong vote of confidence in the UK restaurant sector. We’re seeing a wave of consolidation, particularly at the lower end of the market, as buyers move quickly to acquire competitively priced businesses.”

David Powell adds that “Falling commercial rents in traditionally expensive areas – such as central London – have made acquisitions of restaurants more attractive to buyers. Another factor is that declining equipment costs, which peaked during the pandemic, have made acquisitions more attractive.

Many restaurant groups also undertook comprehensive post-Covid restructuring, including closing loss-making sites and streamlining menus, which has left them leaner and more profitable.

This is reflected in improved financial performance across the sector. Recent research shows that profits for the UK’s top 100 restaurant groups increased 18% to £365m in 2024/25, up from £308m the previous year**. Turnover also rose 19% to £12.9bn, compared with £10.8bn in 2023/24.

David Powell adds: “Many of these restaurant groups are high quality businesses with healthy margins. Buyers are spotting opportunities to acquire potentially undervalued businesses that can be scaled with the right investment.”

“With footfall steadily improving post-pandemic, brick-and-mortar restaurants are once again seen as attractive investments.”

“For some buyers, consolidation also brings the operational benefits of spreading payroll and overheads across a larger portfolio.”