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Fish & Chips market attracting investment

Fish & chips shops have not typically been seen as an area that attracts much attention from investors. However with the continued growth of this sector, amongst an uncertain takeaway industry, there are an increasing number of serial entrepreneurs looking to invest in fish and chip shops.

Chippies are big business in the UK with around 250 million meals served annually and a total industry turnover of £800 million. For every McDonalds in the UK there are 8 fish and chip takeaways. Crucially the profit margins in the industry are strong. The average portion of fish and chips costs £4.50 and gross profit margins are typically between 50% and 60%. Based on these figures, investors are starting to wake up to the opportunity presented by this market. Additionally the industry is prime for a big brand to emerge with the industry is largely made up of independent shops.

Agents that deal with the sale of fish and chip shops have identified a growing number of business orientated entrepreneurs looking to buy shops as investments much in the same vain as property investment. Sean Mallon of Intelligent Business Transfer says “fish and chips shops are always popular with people looking to buy a business. We are increasingly seeing people approach this industry as an investment opportunity, taking over a shop and introducing a management team to run the day to day.”

Intelligent Business Transfer recently oversaw the sale of popular Castleford fish and chip shop Battye’s. Close to the Junction 32 retail park, Battye’s attracted a large amount of interest from buyers and the sale of the business was agreed in only two days of going on the market.

Battye’s was purchased by catering entrepreneurs Elle and Tim Wharton who had been looking to make an investment in a fish and chip shop to add to their portfolio of catering businesses. Elle was impressed by the location, popularity and profitability of Battye’s.

“The decision to buy an established fish and chip shop with a thriving takeaway, knowledgeable staff and attractive profits in a great location wasn’t difficult. In our opinion, the demand for fish and chips in the UK continues to be strong.”

Sean Mallon recommends reviewing the following if you are considering buying your own fish and chip shop as an investment:

• Analyse the trading history - does the business have consistent sales and profit?
• Is the shop located in a good position? Does it have large numbers of passing footfall or traffic or is it located close to a number of houses?
• Is there potential to increase sales through increased opening times or an extended menu?
• Has the business had a consistent number of owners over the years? Or has the business changed hands frequently?

For more information on buying a fish a chip shop or to view shops for sale visit Intelligent Business Transfer.

This was posted in Bdaily's Members' News section by Jonathan Russell .