James Hacon speaks to the Sunday Times on why US restaurant brands are flocking to Britain

In a recent feature in the Sunday Times, James Hacon, managing partner at Think Hospitality, shared insights into the growing trend of American restaurant brands seeking to expand into the UK market. This shift stems from a mix of similar cultures, significant market potential, and shifting consumer preferences that have made the UK an appealing destination for US food chains.

Shared Language and Cultural Ties

The UK has always been a prime target for American restaurant brands, largely due to the shared language and cultural similarities. These factors lead to easier communication and marketing, helping US brands connect effectively with British customers.

Additionally, British consumers have shown a strong acceptance of ultra-processed foods, which represent 53% of the nation’s total calorie intake—the highest percentage in Europe. This acceptance is especially beneficial for American chains known for their fast-food and casual dining offerings.

For instance, chains like McDonald's and Taco Bell have successfully tailored some menu items to fit local tastes while still maintaining their core offerings—this strategy has proven effective in attracting a broad audience.

A Robust Restaurant Scene

The UK showcases a vibrant restaurant industry steeped in a rich history of brewery-owned pubs. This background has fostered an impressive franchise infrastructure, making the UK a natural entry point for businesses looking to expand into Europe.

By entering this mature market, American brands have access to a diverse and evolving consumer base. For example, when Shake Shack launched in the UK, it quickly became popular, demonstrating how US brands can succeed in this well-established environment.

Post-Brexit Opportunities

Since Brexit, the market for restaurant expansion has transformed significantly. Cost pressures, along with changing consumer behaviors, have accelerated growth in quick-service dining—an area where North American brands excel.

Investors now gravitate towards established concepts over untested startups. This trend makes the UK a particularly promising launchpad for proven brands. Companies like Tim Hortons, Wingstop, and Popeyes have recently enjoyed successes, showcasing the potential for growth in the British market.

To illustrate, Wingstop announced plans to open over 40 locations across the UK, capitalizing on rising demand for fast-casual dining options.

Real Estate Dynamics

The changing real estate landscape is another key factor driving US restaurant brands to the UK. Since 2012, there has been a 21% drop in restaurant, bar, and pub outlets. This decline has created a wealth of available real estate opportunities.

This shift allows American brands to secure prime locations at more competitive prices, increasing their chances of achieving successful expansion. For example, brands like Five Guys have taken advantage of this trend, strategically opening new locations in high-traffic areas where competition has waned.

The Future Looks Bright

The insights from James Hacon highlight that the combination of cultural ties, a robust restaurant scene, and favorable market conditions make the UK increasingly appealing for US restaurant brands.

As consumer preferences continue to evolve and real estate opportunities become more accessible, the UK is positioned to remain a central player in the global restaurant landscape. With more American brands establishing themselves, the UK’s culinary scene is set to grow more diverse and dynamic, ultimately benefiting both consumers and businesses alike.