Glasgow: Food and Beverage Market Update 2026

Overview

Last year was a year of contradictory signals for the Food & Beverage (F&B) market in Scotland. On the one hand, making a profit has never been harder: In August the Scottish Licensed Trade Association reported that profitability of 75% of 350 businesses surveyed was down compared to the previous year, and 56% of these were sharply down (over -10%). These are sobering statistics and point to the well documented trading challenges exacerbated by the hike in National Insurance Contributions, stubbornly high utility costs and rise in the minimum wage. You may assume that this would bring the property market grinding to a halt as operators put their expansion ambitions on ice – but the overwhelming trend, especially in Scotland`s largest Cities, was quite the opposite in 2025.

Savills research highlights that last year there were 38 new F&B openings in Glasgow City Centre, totalling 87,000 sqft of accommodation. This is the highest volume since 2018, and 10% more than we reported in 2024. The biggest change in 2025 was a sharp increase in the number of transactions to national or international F&B brands – 25% of these were from these larger brands compared to only 10% in 2024 when the market was dominated by independent brand openings.

Looking ahead to this year, the biggest talking point remains this years business rates revaluation which has for some (bar) operators proposed eyewatering increases of as much as 900%. The relief announced in the Scottish budget does not go far enough and will impact profitability and the property market in many areas this year. Counterbalancing this is an energy in the market that still points to a busy year of new openings - Savills are presently tracking 15 unsatisfied occupier requirements looking to open in Glasgow City Centre which will give landlords optimism that well located properties will continue to attract tenants this year.

Transaction volumes

The chart below outlines the number of F&B openings in Glasgow City Centre since 2018, split between national and local brands.

FOUR NEW OPENINGS AND WHAT THEY TELL US ABOUT THE MARKET

TEN REASONS WHY BRANDS SHOULD HAVE GLASGOW IN THEIR SIGHTS FOR 2026

We often get asked by food and beverage operators less familiar with Glasgow what makes the City tick and whether it would be a good location for them to open in. Here are ten reasons why it may well be:

Size matters.

Glasgow has the 4th largest catchment of any UK City outside of London and the largest in Scotland. With a total catchment population of 1.95m, the volume of people gives a strong customer platform for a new business opening.

A diverse demographic.

Glasgow has always had a gritty reputation, but the size of the city gives access to a very diverse demographic. For F&B operators who target higher income groups, many don’t immediately realise that the catchment includes 550,000 categorised as having upper or upper/middle affluence.

Retail spin-off.

Glasgow has an enviable ranking as the top shopping City in the UK outside of London and shoppers come in their droves. With the city’s best shopping thoroughfare Buchanan Street, reporting annual footfall of 17 million, it is no surprise that the most sought after F&B properties in the City are close to this footfall hotspot.

Public transport.

Glasgow has one of the best suburban rail networks outside of London. Combine this with a large catchment and you can see why, from an accessibility perspective, the evening economy can thrive.

Music/sport/corporate.

Don’t underestimate the potential of these sectors to drive customer numbers. Whether it be a concert at the 14,300 seater Hydro Arena, a major football match or international conference at the SECC (think COP 26), the city is one of the strongest in the UK from this trio of sources.

High hotel occupancy.

Glasgow has 16,000 hotel rooms which in a typical year run at 80% occupancy. Six new hotels have opened since 2023 in the City Centre – further adding to the customer base for F&B brands.

A big student market.

Glasgow has 2 of the largest universities in the UK with 26,000 students at the University of Glasgow (in the west end) and 23,000 at the University of Strathclyde (located in the City Centre). F&B brands that target student customers should take note.

City living.

The level of planning applications for residential development in the City points to a sharp increase in the urban population over the next 10 years. Over 7,000 units are currently in the planning pipeline and with a target to double the City population by 2035, this is poised to offer a boost to the evening economy.

A profitable market.

Perhaps the one question Savills is most asked by brands looking to open in Glasgow is “how are other occupiers trading?”. Glasgow is still in a recovery phase post Covid and the trading picture is symptomatic of this, with some districts feeling the lingering effect of disruption more than others. However, feedback from many national operators who operate prime sites put Glasgow in the top 10% of their UK bar and restaurant portfolios, measured by both turnover and profit margin. Some have even reported that turnover is now in excess of 40% above pre Covid levels. Granted, turnover growth has been essential for the occupiers to offset sharply rising operational costs, but notwithstanding that, this is a clear signal of the underlying strength of the local market.

A big night out city. 

Glaswegians love a party – and the City comes alive on a Friday and Saturday night. Brands should therefore expect to see a weekend spike in turnover which surpasses most other UK Cities.

SAVILLS TEN MARKET PREDICTIONS FOR 2026

1.     2026 Business Rates Revaluation

Without doubt the biggest issue for the F&B market this year is the rating revaluation which comes into effect from 1 April. Many operators are faced with eyewatering Rateable Value increases (as much as 940%). The proposed releif offered by the Scottish Government does not go far enough - the Rating system is in dire need of reform and is not fit for purpose based on many assessments we have seen.

2.     Prime rents expected to be stable in 2026

Prime F&B rents in Glasgow City Centre grew by approximately 15% in 2025 to £50psf. We do not expect to see further rental growth in 2026 as operators absorb the increasing tax burden of this years rating revaluation.

3.     The impact of the one high profile opening

The Ivy and Ivy Asia are set to open in late 2026 and this will be the highest profile restaurant opening ever experienced for Glasgow. The accommodation on St Vincent Place itself is stunning, and a fantastic example of one of Glasgow`s Victorian era, A-listed buildings. This is an upsize for the Ivy in Glasgow who trade successfully on Buchanan Street and will encourage other major F&B brands to put Glasgow firmly at the top of their “to open in” list.

4.     Big events will boost trade and showcase Glasgow

The Commonwealth Games comes to Glasgow from 23 July – 2 August and in addition to a summer trading boost for the City promises to be a great Showcase for both Glasgow and it`s F&B businesses.

5.     Public realm improvements will make a difference

The £20m renovation of George Square and the surrounding streets are set to give the City Centre a much needed boost when the City`s main Civic Square re opens in August. The environment in Glasgow City Centre has been much maligned since Covid-19 and the unvailing of the biggest piece in the Council`s regeneration jigsaw will raise confidence amongst occupiers making major decisions to open in the City.

6.     Further F&B enhancements to come in our malls

Glasgow City Centre has 3 shopping malls (St Enoch, Buchanan Galleries and Princes Square). St Enoch has become the hub of leisure and F&B to cluster together in theCity Centre and two major openings are set to further enhance the catering offer this year.

Recent openings in Princes Square include The Club House, Café Bar 1841, The Delphine and Cuvée.

7.     Green shoots of recovery on Sauchiehall Street

Sauchiehall Street has been the most unloved of Glasgow`s principal streets over the last 10 years, and has a vacancy rate of 11%. The market is set for a gradual recovery thanks to the number of student residential projects underway in the district – and we see this recovery being led by QSR (quick service restaurant) brands now considering opening on the thoroughfare.

8.     QSR market set for further growth

Quick service and fast food operators have grown markedly throughout the UK over the last 5 years and we are tracking 10 unsatisfied QSR requirements for space in the City Centre at present. Look out for more openings this year in the City Centre.

9.     Rising demand for small format grab & go occupiers

We have seen some great small format openings in Glasgow in 2025 from coffee, sandwich and pan-asian brands and with demand strong for units of 1,000-2,000 sqft, look out for more openings from this market in 2026.

10.  Fitted properties will lease quicker

Many operators will only take on fitted F&B properties which can be reformatted on a cost effective basis. Landlords with these properties (in favoured locations) should expect to re-let quickly.