The UK restaurant industry is undergoing a period of rapid transformation, with acquisition activity intensifying across the board. A mix of financial pressures, evolving consumer habits, and strategic investment plays are reshaping the market. One of the most notable developments is the influx of American brands which is helping bridge the gap between high-performing US concepts and UK consumers.
Private equity and strategic investment
Private equity firms remain central to the UK restaurant M&A landscape. Their interest is driven by the sector’s fragmentation and the potential to scale promising brands. Investors are targeting businesses with regional strength, loyal customer bases, and operational resilience. Many deals are structured around platform-building strategies, with bolt-on acquisitions used to accelerate growth.
Strategic buyers are also active and several listed UK restaurant companies have been taken private, reflecting investor confidence in the long-term value of the sector.
The American invasion
Alongside investor-led consolidation, the UK has become a prime target for American restaurant chains, many of which are pursuing aggressive expansion plans. Wendy’s, Popeyes, and Taco Bell have all made significant inroads, while newer entrants like Dave’s Hot Chicken and Carl’s Jr. are preparing to open dozens of sites across the country.
A new player in this movement is Kuvi Hospitality, a London-based investment platform founded by Kuvi Capital. Led by Shereen Ritchie – formerly of Leon and Buns from Home – Kuvi is focused on introducing premium US brands to the UK market through strategic franchise partnerships. Its first major deal is with Coyo Taco, a Miami-born Mexican street food brand known for its vibrant speakeasy-style venues and celebrity following.
The arrival of US brands has added a new layer of competition, prompting domestic operators to sharpen their propositions and, in some cases, seek partnerships or acquisitions to stay ahead.
Consumer behaviour and market positioning
Post-pandemic shifts in consumer behaviour continue to shape acquisition decisions. While inflation has curbed discretionary spending for some, dining out remains a cultural norm. Brands that offer value, convenience, or a distinctive experience are proving more resilient and, in turn, are more attractive to investors.
The polarisation of consumer spending is also influencing strategy. Premium dining still appeals to higher-income customers, while others are trading down to fast-casual or quick-service formats. This bifurcation is prompting investors to back businesses with clear market positioning and scalable models and the ability to adapt to changing consumer priorities.
Economic pressures and operational efficiency
At the same time, rising costs, in particular, labour and energy to food and rent, are squeezing margins across the sector. For some operators, this has led to financial distress and made them acquisition targets. For others, it’s an opportunity to demonstrate resilience and attract investment.
Technology is also playing a key role in this shift. Businesses that have embraced digital ordering, AI-driven scheduling, and supply chain optimisation are better positioned to weather economic headwinds and appeal to investors.
Consolidation and synergies
Consolidation remains a central theme. Larger groups are streamlining portfolios, while investors pursue synergies in operations, marketing, and logistics. The influx of US brands has accelerated this trend, as domestic operators seek scale and efficiency to compete.
There’s also growing interest in niche segments such as plant-based dining, health-focused concepts, and experiential formats, which are seen as future growth drivers.
Conclusion
The UK restaurant sector is evolving rapidly, with acquisition activity driven by a mix of strategic ambition, economic necessity, and international interest. The influx of US brands is reshaping the competitive landscape, creating both challenges and opportunities for domestic operators. As investors continue to seek scalable, resilient businesses, the sector is set to experience sustained M&A momentum, with consolidation, innovation, and differentiation at the heart of the story.
Looking to navigate the evolving restaurant M&A landscape with confidence?
Our specialist Hospitality team can help you assess opportunities, prepare for investment, and strengthen your financial position. Whether you’re considering acquisition, seeking funding, or planning for growth, we’re here to support your next move.
Let’s talk. Get in touch with Andrew Ball, Senior Hospitality Partner, to find out more.
