Over the past year, a number of brands have either entered the German market, announced plans to do so, or used German partnerships as the foundation for wider European growth. Pizza Pilgrims, Loungers and Sticks ‘n’ Sushi all have different strategies, but together they point towards the same question: is Germany becoming one of the most attractive expansion markets for casual dining?
Germany represents Loungers’ first international expansion, but rather than simply exporting its successful Lounge format, the all-day restaurant and bar group has developed an entirely new brand for the market. Southville, which will open in Essen in October, takes its name from the Bristol neighbourhood where the first Lounge opened in 2002 and has been specifically designed for German consumers.
The decision reflects the extensive groundwork undertaken before committing to the market. Loungers says it spent considerable time researching German consumer behaviour, cultural nuances and the wider F&B landscape. That work ultimately convinced the business that there were strong parallels between the UK and Germany, particularly around neighbourhood hospitality, all-day socialising and casual dining occasions. Rather than viewing Germany as a fundamentally different proposition, the company identified enough overlap in customer habits to believe its core proposition could travel successfully.
However, the research also highlighted where adaptation would be essential. Instead of simply replicating the UK Lounge model, Southville has been tailored specifically for German consumers. Table service and reservations, which are not central features of the Lounge format in the UK, will become key differentiators from the original format. Meanwhile, around half of the existing Lounge menu has either been replaced or adapted following collaboration with a Germany-based development chef to better reflect local tastes. The Lounge menu is extensive, covering everything from breakfast baps, folded flatbreads and burgers to mezze bowls, tacos, nasi goreng, bao buns, dan dan noodles, patatas bravas and Korean king prawns and it’s not yet known which UK dishes will make the cut or what adaptions Loungers will make to its German menu.
Pizza Pilgrims’ route into Europe is less direct, but Germany still appears to be playing a significant role in its international ambitions. Last year, the UK pizza chain agreed to sell a majority stake to German-founded Italian restaurant group L’Osteria, designed to support both further UK growth and expansion across Europe.
While Pizza Pilgrims has yet to announce where it will expand first, its decision to partner with Germany-founded L’Osteria is telling. Founded in Nuremberg, L’Osteria operates more than 200 restaurants across 10 European countries and has extensive experience of the German and wider DACH markets. Access to that infrastructure, market knowledge and regional experience could provide Pizza Pilgrims with a direct route to expand in Germany, while also creating a platform for broader European growth.
Sticks’n’Sushi provides an earlier example of a casual dining group identifying Germany as an attractive expansion market. The Copenhagen-founded Japanese restaurant group opened its first German site in Berlin in 2017, following its UK debut in 2012. The move made Germany the third market for the business. Since then, Sticks’n’Sushi has expanded its Berlin presence to three locations, demonstrating its continued commitment to the market. Its experience suggests Germany can support international casual dining concepts beyond an initial entry point.
The same can also be said of French-founded Italian group Big Mamma, which has made a play into Germany, with restaurants in Berlin, Munich and Hamburg
It appears, then, that Germany is emerging as a potential battleground for casual dining brands. This trend may still be in its infancy, but the recent activity suggests the market has the scale and consumer appetite to support brands looking to expand internationally.