Some 33 prominent restaurants in London closed their doors in the first half of the year, compared to just 14 during the same period of 2023.
It’s thought a major cause is businesses being priced out by expensive rents.
The data for the research comes from food and drink website Hot Dinners, with analysis by real estate consultancy Robert Irving Burns.
At the same time demand has risen slightly, as there were 137 restaurant launches in London in the first half of 2024, up from 129 last year.
Gavin Hanly, co-founder of Hot Dinners says: “London continues to boast some of the best restaurants in the world, with an incredible variety of cuisines available.
“The West End still attracts the biggest names in the business and it looks like the City is making a comeback.
“However, things are changing and some less central areas, particularly Notting Hill and Canary Wharf, are seeing more high-profile openings than ever.”
Over half (52%) of the new restaurants opening are located outside of the traditional Prime Central London locations, compared to 50% last year.
Of the new openings in 2024, almost one fifth (19%) are located in prime central W1 postcode encompassing Mayfair and Marylebone, down from 26% last year. High profile openings include Michel Roux Jr’s Chez Roux, following the closure of Le Gavroche and Arlington, which marked the return of famed restaurateur, Jeremy King.
Conversely, the proportion of new openings that are in EC (The City and Shoreditch) has risen from 4% to 10% as the area seeks to compete with the West End as a dining destination.
New restaurants include Engel & Jang at the Royal Exchange, a Japanese/Korean fusion restaurant with Art Deco inspired interiors opened by Des Gunewardena, the ex-D&D co-founder who was behind iconic restaurants like Quaglino’s.
The opening of BoxHall, a 17,000 square foot site beside Liverpool Street Station, will see 16 new pop-up restaurants launch in Winter 2024.
Antony Antoniou, chief executive of Robert Irving Burns, said: “The mantra in real estate of ‘location, location, location’ is particularly pertinent to the restaurant space – a restaurant will often live or die due to its location.
“A great example of this is Cornerstone, the Michelin star restaurant in Hackney Wick, which recently announced plans to permanently close, just weeks after being slated to move to a larger, more central location in either Mayfair, Marylebone, Covent Garden or Soho. The operators will focus instead on their remaining, more central location, the Pearly Queen in Shoreditch.
“The advantages of being located in a secondary location, such as cheaper rent per square foot and fewer competitors, are often outweighed by the downsides of much lower footfall and lack of visibility, due to lack of proximity to shops, tourist attractions and offices.
“The success of restaurants in outer locations will be down to their location in these places. Those located in areas of high footfall and visibility will likely be able to capitalise on the working from home and weekend trade, whilst being able to offer greater value for money due to their lower costs.”
