Achieving on-going growth in a decelerating market was the key theme of this year’s Horizons’ Annual Briefing, held yesterday in the City of London and attended by over 120 industry representatives.

Having heard from Bank of England agent for London Peter Andrews on the economic outlook for the UK, Horizons’ managing director Peter Backman told the audience that the forecast for the UK’s foodservice market was less confident than it was, with growth likely to end the year at 1.8% compared with last year’s 2%.

Backman said: “There is now some uncertainty in the economy, particularly with the question mark over the UK’s relationship with the EU. Some of the big restaurant and pub groups have reported slightly shaky figures for the first quarter with unimpressive like-for-like sales. I suspect this means we will see little growth throughout the rest of the year. At best sales are likely to grow slightly across the sector.

“Smaller companies can be more nimble, more adaptable and more able to maintain control – it is with the fledgling businesses that we are currently seeing the most growth in the UK in terms of new store openings and many are bringing something new and innovative to the market, which means the larger players must too.”

He added that intense competition on the high street means like-for-like growth is difficult to achieve putting pressure on chains to grow sales by expanding their outlet numbers despite the paucity of new sites of sufficient quality, pushing already expensive rents even higher.

A panel made up of Denton’s international franchise partner Babette Marzheuser-Wood, Peter Backman, Alasdair Murdoch, CEO of GBK and Martin Williams, CEO of M Restaurants, discussed the importance of growth and embracing change.

Backman urged larger foodservice operators to innovate in order to keep up with newer players. Internet ordering and improved delivery together with payment via apps were cited as examples of recent changes in the market.