Insatiable demand for quality freeholds in the pub market will continue to drive up property prices in 2004, according to Christie & Co.
At its annual business review the property agent said pub values rose 6.2% during 2003 through demand outstripping supply.
The review also predicted a good year for small independent operators as the local pub market seems set to remain buoyant. First-timers or small groups of restaurants also look likely to continue making their mark, with no end to new operators keen to try their hand in the London market.
Meanwhile the high-street market looks set for another battering this year, despite recent signs of an improvement in general trading performance. "There are some very good operators, but there remain too many units on the high street," said Chris Day, managing director of Christie & Co.
Corporate restaurant groups are unlikely to fare much better than their pub cousins, with Christie & Co believing that the rollout of any new brands this year remains an extremely risky proposition.
Consolidation within the coffee-shop market will continue, with Starbucks leading the charge.