The figures, based on company accounts filed as of 30 June, show that profits across the UK’s top 100 restaurant groups have risen to £365m this year, up from £308m in 2024.
Turnover, meanwhile, has jumped to £12.9bn from £10.8bn last year, reflecting a 19% rise.
UHY Hacker Young attributes the increases in profit, in part, to the embrace of technology amongst operators.
This includes greater use of touchscreen ordering to reduce reliance on labour, better data tools to more accurately forecast sales and manage stock, and launching mobile apps to allow customers to easily manage bookings, orders and offers.
“Despite an extremely tough trading environment the UK’s restaurant sector is showing a strong turnaround in profitability,” says Martin Jones, partner at UHY Hacker Young.
“Whilst many chains are still suffering from depressed margins and weak demand there is enough innovation and expansion going in the top 100 to deliver better results.”
Other key measures businesses have undertaken to increase sales and profitability include upgrading offerings to increase menu prices and offset food inflation; and signing exclusive partnerships and offering exclusive menu items with delivery companies like Deliveroo and Just Eat to boost at-home dining sales.
According to the analysis, growth has been particularly strong in the fast food and casual dining segments.
“Many operators have adapted quickly, embracing new technologies and finding innovative ways to reach customers and keep them coming back,” Jones continues.
However, he also adds that there are ‘obvious clouds on the horizon’ including the increases in employers’ National Insurance contributions announced in last autumn’s Budget.
He also singles out the continued ramping up of the minimum wage as a ‘major threat’ to operators.