It's time to invest in the best young brands...

It’s time to invest in the best young brands…

Over the last year, news headlines have presented a fairly pessimistic view of the leisure and hospitality sector, dominated by high profile restaurant closures and a continuingly struggling high street. Such news, amidst a backdrop of political and economic uncertainty, has undoubtedly contributed to a rather discouraging outlook for the sector, but we take take a different view at Imbiba, having traded through different economic cycles in the last 20 years. We see the opportunities that are presented by the current market conditions and are motivated and optimistic by the current market shake out.

Many of the best businesses in our sector have been built during turbulent times, benefiting from a deflating of the property market, a reduction in competition and an acute focus on innovation. Now more than ever, we are seeing a wide array of young and dynamic businesses offering something truly differentiated, and these brands are uniquely placed to capitalise on the current market malaise by taking full advantage of the current property market, securing great sites on compelling economic terms.

In the age of CVAs, landlords are increasingly cynical of the supposed ‘covenant’ provided by bigger corporates, preferring instead to partner with well-funded young brands with an attractive and unique consumer offer. The ‘same old’ is no longer good enough for landlords with the best locations. 

With the vast supply of choice now available to consumers, good service and a high-quality product is the bear minimum that is expected. Businesses now need to innovate to stand out from the crowd and draw in customers. This has been clear from the rapid growth and success of “competitive socialising”, as people increasingly demand an experience beyond the basic food and beverage offering. Customers have become more selective and businesses that fail to evolve in line with these trends are likely to fall short. 

In a recent report published by Deloitte, “Passion for Leisure”, it was announced that leisure spending has increased or is at least stable in the majority of their categories compared to this time last year. Despite the pessimism surrounding the sector, there is still plenty to play for, but operators are going to have to work harder to fight for that pound from an increasingly discerning customer.

Imbiba continues to be impressed by the innovation we are seeing in the industry and are excited to partner with businesses at the forefront of the Next Wave of great leisure and hospitality businesses.

 If you would like to get in touch as an operator seeking investment or to partner with us, please contact the team and we would be delighted to help.