2024 was a record year for food and beverage (F&B) openings in Glasgow city centre, with 34 new openings, 90% of which were by local independent operators.
Signifying a 25% increase on 2023, this is very encouraging for the year ahead, especially within the context of a challenging trading climate.
What, then, makes Glasgow such a popular location? For those less familiar with the city, there are a number of key ingredients to consider.
Glasgow has the fourth largest catchment population of any UK city outside of London and the largest in Scotland, according to Geolytix. With a population of 1.95 million, the volume of people provides a strong customer platform for any new business opening.
Despite the city’s gritty reputation, Glasgow’s size means it has a very diverse demographic, which gives F&B operators the opportunity to capture a wide group of people, from students to more affluent consumers.
Glasgow holds the enviable position of being ranked as the top shopping city in the UK after London, with MyTraffic reporting that Buchanan Street now has an annual footfall of 16 million people making the neighbouring thoroughfares highly sought after F&B locations.
Glasgow also has one of the best suburban rail networks outside of London making it highly accessible allowing the evening economy to thrive.
Music, sport and culture all play a role in driving customer numbers. Whether it’s a concert at the 14,000 seater Hydro Arena, a major football match or international conference at the SECC, there are often a lot of people looking for a good meal in the city.
Glasgow has as many as 16,000 hotel rooms, which in a typical year run at 80% occupancy. In fact, six new hotels have opened since 2023 in the city centre further adding to the customer base for F&B brands.
The city is also home to two of the UK’s largest universities. With over 26,000 students at Glasgow University, situated in the west end, and 23,000 at the University of Strathclyde in the city centre, both locations are ideal spots for F&B operators looking to target the lucrative student market.
The level of planning applications for residential development in the city points to a sharp increase in the urban population over the next 10 years. With over 7,000 units currently in the pipeline and with a target to double Glasgow’s population by 2035, this is poised to offer a boost to the night time economy.
We are still often asked how operators are trading post-pandemic and Glasgow remains in a recovery phase. The trading picture is symptomatic of this with some districts feeling the lingering effects of disruption more than others. However feedback from many national operators who have prime sites in Glasgow put the city in the top 10% of their UK bar and restaurant portfolios, measured by both turnover and profit margin. Some have even reported that turnover is now over 40% above pre-Covid levels. Granted, this growth has been essential for occupiers to offset sharply rising operational costs, but this remains a clear signal of the underlying strength of the local market.
Most importantly perhaps, Glaswegians love a party. Following investment into the nighttime economy, there is a more consistent level of footfall and trade in the city throughout the week with a natural spike on Friday and Saturday. This means F&B brands can expect to see a weekend increase in turnover which surpasses most other UK cities.
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