Let’s talk about AI…It’s been coming for long enough and now it’s here many of us are trying to navigate both how to use it and how it will impact our lives. What we do know already is the rapid development of artificial intelligence has begun significantly and is transforming industries globally. Its potential to revolutionise business efficiency is completely unprecedented.
As an advisor working closely with the restaurant and leisure sector, I am witnessing firsthand how these technologies are becoming increasingly pivotal in reshaping the operational side of these type of businesses and therefore impacting our own personal lives.
One of the potential outcomes of this technological shift that I find most fascinating is the increase in automation and consequentially the reduction in the number of hours we will need to spend at work. There is an incredibly interesting historical parallel here; In the 1920s, Henry Ford introduced the five-day work week, giving his factory workers Saturdays off. This move wasn't purely philanthropic; it was a strategic decision. By giving his workers more leisure time, Ford enabled them to enjoy the cars they were producing. More leisure time meant more driving, which ultimately boosted demand for Ford's automobiles. His pioneering approach essentially laid the groundwork for a modern work-life balance and highlighted the intrinsic link between work, leisure and business growth.
Nearly 100 years later, we find ourselves at a similar inflection point. Advances in AI and machine learning are not only making businesses more efficient but also have the potential to free up substantial amounts of time for employees. Whether it’s automating back-office functions, enhancing supply chain logistics, or optimising restaurant booking systems; AI is improving efficiency across the board. These technologies can perform tasks in seconds that would have taken hours previously so creating the possibility of shorter work weeks while maintaining (or perhaps even increasing) productivity.
As AI reshapes the landscape of work, discussions around the structure of the working week are gaining prominence. In the UK, we’re on the cusp of potential political changes that could have a profound impact on how we work and live. The new Labour government is exploring policies that could enhance workers' rights, one of which is the introduction of a four-day working week. These changes are not just theoretical. Trials of four-day working weeks across the world have already yielded promising results demonstrating that employees are not only just as productive but often happier and more engaged. This push for reduced working hours, powered by AI and machine learning, aligns with a broader cultural shift towards valuing time spent away from work whether for leisure, family or personal development.
A couple of weeks ago I visited Fairgame in Canary Wharf; a vibrant example of how the leisure sector is responding to this change. Fairgame is an experiential competitive socialising venue. It is a fairground-inspired concept which brings playful, nostalgic activities into a contemporary urban setting. Historically known as a corporate-dominated area, Canary Wharf is now undergoing a transformation, with an increasing emphasis on mixed-use developments blending offices and residential with leisure and restaurant offerings. This shift in focus highlights how leisure is becoming a cornerstone of urban life as we seek more fulfilling ways to use our newfound free time.
Fairgame is just one example of how leisure can be reimagined to create more dynamic spaces for people to engage with. The growth of competitive socialising venues, experiential dining, and other innovative leisure concepts signals a growing demand for spaces where work and play blend seamlessly together. As we transition to shorter work weeks and the concept of leisure time expands, the demand for such venues will undoubtedly grow. Within this backdrop, the restaurant and leisure property sectors are incredibly well-positioned for growth.
Just as Henry Ford recognised the link between free time and consumption, businesses today should embrace these changes. Advances in AI present a profound opportunity to reshape not just the way we work but how we spend our leisure time. As this shift gains momentum, the prospects for the leisure and F&B sectors have never looked stronger and investors who move quickly to capitalise on these trends will undoubtedly reap the benefits in the years to come. With prime leisure assets such as Brixton Market and Borough Yards currently on the market it will be interesting to see who the visionary developers who take them forward are…
