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Zolfo Cooper Predictions for the Leisure Industry For 2011

Corporate advisory firm Zolfo Cooper’s bi-annual Leisure Wallet report, which combines analysis of the spending habits of more than 3,000 consumers carried out in November, found signifcant falls in leisure spend across vitually all sectors.

“Most leisure sector operators anticipate significant challenges in 2011 with the clear risk that consumer demand will fall further as the combination of the VAT increase, cost inflation and the government austerity measures starts to bite,” said Paul Hemming, leisure sector lead partner at Zolfo Cooper.

“The impact is expected to be felt very differently across the regions, with the South East — and London in particular — offering good growth opportunities as interest in the capital builds in the lead up to the Olympics. We therefore expect operators with a strong London or South East presence to be key targets for M&A activity in 2011.

“Outside the South East the picture is less clear. As demand weakens, relevant, well run operations will take market share and, if suitably funded, will have the opportunity to expand through acquisition.”

Hemming added: “For many, leisure remains a high-risk sector, but plenty will be keen to identify the niche growth opportunities and we therefore expect private equity and international investors to be active bidders in all situations in 2011.

“The restaurant market with its range of new concepts and roll-out brands will, in our view, be the most active market in 2011, with deal potential across the spectrum from early-stage investing through to stock market listings.”

via pubs-for-sale.biz

Posted via email from UK Pubs For Sale And Development