The Evening Standard recently ran a headline declaring, “Gail’s is just a posh Greggs”, reflecting local opposition to the bakery brand’s new Walthamstow location.

 

As someone who appreciates Gail’s both as a consumer and industry insider, I admire how this business has consistently outperformed the market while scaling rapidly and maintaining quality. However, this situation brings up an important question: how much can a restaurant or foodservice brand expand before it risks oversaturation and losing its initial attraction as it grows? This is a challenge we frequently encounter as brand and growth strategists working with clients and our own brands here in the UK and overseas.

 

With most of its locations concentrated in London and only a few outposts beyond, Gail’s still has significant room to grow within the UK, particularly in Greater London. Comparing it with Pret, which operates 291 stores in London alone – 42% of its global estate – suggests that Gail’s has considerable expansion potential within the M25. This is especially true given its recent growth in travel hubs and an enhanced partnership with Waitrose, which further positions the brand for continued expansion.

 

This dilemma echoes the recent shake-up at Starbucks, where chief executive Laxman Narasimhan was replaced due to disappointing results. Starbucks is grappling with geopolitics, rising competition and the emergence of fifth wave coffee. Brands like Costa, now backed by Coca-Cola, are poised to take a larger share of the US market. Additionally, non-coffee brands like Joe & The Juice, Panera, Chaiiwala and Gail’s are encroaching on its territory. Meanwhile, Starbucks and Costa have arguably commoditised their own market with innovations in bean-to-cup vending, retail products and ready-to-drink options, which may dilute the perceived value of their high street and stand-alone stores.

 

During my time in Australia, I experienced first-hand the challenges that foodservice brands face when scaling in a market famously resistant to multi-site brands. Starbucks attempted to introduce American coffee culture in 2000 but closed 61 of its 87 stores within eight years. Though it has since rebounded with around 60 locations, its presence remains modest in a market with more than 20,000 coffee shops. Strong local competition and a lack of market relevance were key factors behind this struggle.

 

In stark contrast, the local brand Guzman y Gomez has thrived, expanding to more than 200 locations across four countries and becoming one of Australia’s most successful initial public offerings, surging 39% on its trading debut. Guzman y Gomez’s homegrown roots, a focus on a cuisine type ripe for growth and an emphasis on healthy, fresh options have clearly resonated with consumers far more effectively than the typical fried fast-food offerings.

 

There’s no single formula for success in branded hospitality – if there were, everyone would follow it. Winning in this industry is about continuous testing, learning and adapting. Success is often less about the size of the brand or the number of locations and more about how growth is managed. Several factors can affect the consumer perception that initially made a brand appealing:

 

1. Loss of authenticity: As restaurant groups expand, they risk losing the unique, local or artisanal qualities that first attracted customers. The brand may start to feel too corporate, stripping away the personal touch and distinct character that smaller, independent establishments offer.

2. Perceived decline in quality: Rapid scaling can lead to inconsistencies in food quality and service. Maintaining high standards across multiple locations is challenging, which can alienate loyal customers.

3. Over-saturation: When a brand becomes too ubiquitous, it risks losing its special appeal. Consumers may prefer unique, independent options over a brand they see everywhere.

4. Lack of local connection: Large brands often struggle to maintain a strong connection with local communities. Consumers value the local flavour and community ties that independent restaurants provide, which can be diluted in a larger corporate structure.

5. Brand fatigue: As brands expand, the novelty of their concept can wear off, leading to brand fatigue. Consumers might seek out new and exciting dining experiences, moving away from a brand that feels too familiar or predictable.

Successfully scaling a multi-site group ultimately hinges on the everyday decisions that shape strategy, operations and the organisation. Here are my distilled insights:

1. Experience design: Create a seamless customer journey that prioritises memorable moments and showcases personality.

2. Balancing structure and entrepreneurialism: Implement robust processes for consistency while allowing for entrepreneurial flexibility.

3. Strong culture: Develop a clear company culture that aligns structure with core values, emphasising people and individuality.

4. Quality focus: Maintain high standards for food and service through comprehensive training and quality control.

5. Cultivate brand identity: Build a compelling brand identity that resonates with customers and reflects your values.

6. Invest in learning and development: Focus on employee training to foster a motivated workforce, as happy employees lead to happy customers.

7. Embrace customer feedback: Gather and utilise customer feedback to drive improvements and brand evolution.

8. Stay current with trends: Keep abreast of industry trends and changing consumer preferences to maintain relevance and appeal.

During these warmer months, I’ve spent sufficient evenings in Central London, and on my travels around major cities including Manchester and Birmingham, to suggest that the ritual of post-work drinks continues to play a meaningful role for many people.

 

One of the things I missed most when switching from an office-based role to home-based self-employment many years ago was the loss of after-work drinks with colleagues. It was an opportunity to dissect the day and continue the work-related chat but in a more relaxed environment, and it also played a somewhat therapeutic role in providing a platform to work through any issues. 

 

It was also an opportunity to often spend some out-of-the-office time with more senior colleagues who might be tempted to spend a brief bit of time – and possibly buy a round of drinks – with junior members of the team before heading home and leaving the rest of the evening to the youngsters.

 

Despite my anecdotal evidence of a continuation of post-work drinks in UK towns and cities, it seems that it might be on its last legs, according to the Work Foundation think tank, which has undertaken research with the International Alliance for Responsible Drinking (IARD). They believe the rise of remote working and the increasing level of non-drinking by Generation Z employees is sounding the death-knell for an after-work activity that I reckon has provided much social value to many people over the years. Well, I guess they would say that, wouldn’t they!

 

Against this backdrop, the Work Foundation is encouraging employers to move away from alcohol-centred socialising and instead adopt more inclusive and healthy workplace cultures. This could include rebranding events from “drinks” to “socialising”, offering non-alcoholic beverages and scheduling gatherings during work hours to accommodate employees with various responsibilities.

 

What seems to have been overlooked by the Work Foundation is that the vast majority of the post-work drinks activity that takes place is nothing to do with companies, but is predominantly down to the employees gathering under their own steam in their own time and paying out of their own pockets. 

 

But even when we are talking of a company organised post-work event, I’m seriously doubtful that for all but the most Neanderthal-minded companies, the environment created would be one that simply does not involve the enforced drinking of alcohol. This would be inexcusable today, and surely must only be the domain of a very small minority of backward-looking organisations managed by older executives.

 

Even the Work Foundation suggests that 73% of senior business leaders are managing a workforce that spans four generations, each with different expectations about health and well-being. To think that the younger generation would be put upon by heavy drinking old-school managers seems rather fanciful to me. Generation Z quite rightly expect – and should demand it where it does not exist – a more inclusive and positive work culture.

 

The Work Foundation and IARD have valid points to make and are clearly working towards a brighter future in the workplace, but to target the post-work drink as a way to leverage their messaging seems a tad misplaced. It has a potentially negative knock-on effect for the hospitality sector that is doing so much positive work on creating inclusive environments.

 

For the vast majority of people, post-work drinks continues to represent a pleasurable extension to the working day and provides an opportunity to release the pressures that often build-up in the work environment. 

 

Clearly there are examples of where this can fall over into unhealthy practices, just as alcohol consumption can be a problem in many other scenarios, but the post-work drinks of today are undoubtedly no longer wholly predicated on the consumption of alcohol (excessive or otherwise) as they were in days gone by when we watched The Sweeney.

 

This is very much reflected in the offerings across the modern-day hospitality industry that have become much more inclusive environments. The expansion of non-alcoholic drinks continues apace, food is now a given across the landscape, and the growth of experience-led propositions and theme bars further moves things on from being solely about alcohol. Some think tanks should maybe think about this.

I was back at Tobacco Dock earlier this month for the London Craft Beer Festival’s trade session. Not everyone is a fan of the venue, it’s quite a maze. But I like it. It’s more interesting than a big old air-hangar, even if you never know quite where you are and can never seem to find anything.

 

By midday, one hour in, the place was thronged and I was hunting for the toilet. After a few minutes walking around in giddy circles, I gave up and asked someone behind a stand that happened to be quiet. “It’s just along there,” he said, pointing and searching for some telling landmark. “There, over by the black man.” It was true. I couldn’t miss it. In that sea of swirling white faces only one was black. And he wasn’t moving, he was security.

 

Suddenly, craft beer, hip, cool and right-on, didn’t look so politically correct. White people like me don’t usually notice that there are no non-white people in the room until it’s pointed out like this. I’m not making accusations of racism here, but we have a blind spot. And when you start to really look, it can be quite shocking.

 

I was at another industry event a while back, a couple of hundred people there, and I could see only one non-white person. Until the guest speaker turned up. The entertainer. I felt even more uncomfortable about this when I noticed that the only non-white person in the audience left the room during the speech. Perhaps he had an urgent need to go to the toilet. Or perhaps he was painfully embarrassed. 

 

When you’re white, you only see this kind of thing when you start actively looking. I wasn’t in a room full of racists. It comes from a whole history of structural racism in society. The structures that ultimately breed the kind of disturbing scenes we’ve seen on our streets the past couple of weeks – and that thankfully have awakened the vast majority to stand up and defend their multicultural communities.

 

We’ve made progress, of course, even in the beer and pub industries. I ought to say that the chap at the festival I asked for directions was Asian, and the event had some good examples of the diversity available in this sector. It was great to see Indian Brewery had a busy stand there, and if you’re in Birmingham city centre, check out its fabulous taproom. It’s got another venue opening in the Jewellery Quarter any day now, and one of its neighbours there will be the Burning Soul Brewing, again highlighting the sector’s diversity.

 

In London, Jaega Wise is a prominent figure in British beer, brewing at Wild Card in Walthamstow (scene of the largest local anti-racist gathering this month, incidentally) as well as broadcasting for BBC Radio 4’s Food Programme. South of the river, Eko Brewery’s Anthony and Helena Adedipe are harnessing their African heritage to produce some highly distinctive beer from a brewery and taproom in Peckham, while Stacey Ayeh is still looking for a permanent home for his Rock Leopard Brewing Co.

Kent-based Steve Sailopal, meanwhile, is carving out an alcohol-free niche with his Good Karma Beer Co. It’s good to keep mentioning these positive examples, though it’s significant that there are few enough of them to come to mind quite readily. There may be others I’ve missed – in which case, I’d like to know what they are. Ethnic minority-operated pubs are more numerous, and David Jesudason continues his fine work in bringing into the media light the country’s Anglo-Indian houses.

As I’ve probably mentioned before, I was completely oblivious to the category of the desi pub until he started writing about them. One reason for that could be that running a pub is not usually a political crusade. Publicans mostly just get on with business, keeping their customers happy without shouting about it. Though Jesudason’s stories do reveal the struggle against racism underlying desi pubs, a racism that no doubt continues to raise its ugly head.

 

That “over-by-the-black-man” moment at the London Craft Beer Festival was a lesson against complacency, against the assumption that “we’re all cool here”. I’m not sure I can untangle the chains of causation that mean craft beer remains a predominantly white pursuit, and I have no particular call to action for the brewing and pub industries.

 

Except that it’s down to all of us, in our jobs and in out wider lives, to call out the racists, show solidarity where it’s needed and to simply be aware that we’ve got a long way to go yet.