Roadside restaurants
Source: gov.uk (2025-04-28)

This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.

1. Scope

1.1 This section refers to Roadside Restaurants SCAT code 238. Many of these restaurants are occupied by recognised Drive-to brands. There is therefore a degree of overlap with instructions contained in Rating Manual: section 6 part 5 - section 365 (drive-to and drive-thru restaurants) (https://www.gov.uk/guidance/rating-manual-section-6-part-3-valuation-of-all-property-classes/section-365-drive-in-and-drive-thru-restaurants) and valuers should be familiar with both sections of the Rating Manual.

1.2 The principal difference to note between roadside restaurants and drive-to/ thru restaurants is that Roadside Restaurants serve the passing motorist as opposed to destination sites. At some of the larger main road service area sites there are recognised drive-to brands alongside familiar roadside restaurant names trading in the same amenity building with one or both operated as franchises. In addition, some traditional roadside restaurant occupiers are now occupied solely by coffee and fast-food chains.

1.3 Other traditional roadside restaurant sites are now occupied by independent restaurateurs. Again, because of their location, they serve the passing motorist. But these sites should not be confused with Roadside Restaurants or the destination restaurants which also may be situated by the roadside. Sites occupied by independent restaurateurs do not fall within the scope of this instruction and should be considered in accordance with Rating Manual: section 6 part 3 – section 875 restaurants (https://www.gov.uk/guidance/rating-manual-section-6-part-3-valuation-of-all-property-classes/section-875-restaurants).

1.4 Roadside restaurant sites are usually signposted ‘Services’. The following types are typical:

Converted houses, usually with extensions in isolated A-road locations. Some of these have been taken over by fast food chains but they are more likely to be occupied by independent operators when they change hands.

Converted houses as above but with petrol stations adjacent that are usually not in the same occupation. These are most likely to be occupied by traditional Roadside Restaurants or another fast food chain or a coffee chain.

Purpose-built premises situated alongside other main road services such as petrol stations, motels and other cafes/ restaurants. The facilities together are known as a ‘main road service area’. There will be public toilets. Traditional Roadside Restaurants will sometimes include kiosks or a gaming area.

1.5 This guidance excludes Motorway Service Stations (SCat 194). For advice on motorway service stations see Rating Manual: section 6 part 3 - section 710 motorway service areas/ let outs and truckstops. (https://www.gov.uk/guidance/rating-manual-section-6-part-3-valuation-of-all-property-classes/section-710-motorway-service-areas-major-road-service-areas).

1.6 Key attributes of roadside restaurants are:
- built or adapted primarily to cater for the needs of the passing motorist
- prominently located on through routes with heavy traffic, often adjoining petrol filling stations or travel lodges
- may enjoy a relative monopoly position in a rural location, away from competing or comparable commercial users
- adequate on-site parking
- signposted ‘Services’
2. List description and special category code

Primary description code: CR

List description: roadside restaurant and premises

SCAT code: 238

Suffix: G (Generalist)

3. Responsible teams

3.1 Roadside restaurants are a Generalist class. Responsibility for inspection, survey and valuation is with the Property Data Unit (PDU) and Regional Valuation Units (RVU).

3.2 At each Revaluation it is anticipated that each Unit will have a named individual responsible for the class. More than one named individual is recommended for succession planning.

3.3 It is also recommended that each Unit should allocate a named coordinator, or Lead Valuer, to act as a point of contact within the Unit. This Lead Valuer will be responsible for assisting in the delivery of the Unit’s valuation scheme and also for liaising on valuation and technical issues with other Lead Valuers across adjoining Units. The Lead Valuer is responsible for ensuring compliance with this guidance.

4. Co-ordination

4.1 The Retail 3 Class Co-ordination team (CCT) has overall responsibility for this class. The team considers the overlap with the Drive-to and Drive-thru Restaurant class and the more general A3 restaurants. The Retail 3 CCT is responsible for valuation guidance and the overall accuracy and consistency of valuations.

4.2 Valuers have a responsibility to:
- follow the advice given at all times – practice notes are mandatory
- not to depart from the guidance given on appeals or maintenance work, without approval from the co-ordination team
- seek advice from the co-ordination team before starting on any new work
4.3 It is envisaged that co-ordination within and across the Units will be necessary to ensure consistency of approach. RVU/NVU co-ordination may also be necessary where a recognised ‘Drive-to’ brand is occupying a traditional roadside restaurant site.

5. Legal framework

5.1 For the 2005 List, traditional roadside restaurants were valued in accordance with a national scheme based on trading receipts. This approach dated from a time when they were occupied and assessed together with adjacent motels and petrol filling stations. But these three elements are now usually occupied separately and therefore and assessed separately.

5.2 In the 2010 Rating List it was considered that there was sufficient rental evidence to value on the rentals method. This method of valuation was challenged by ratepayer representatives and there are two Valuation Tribunal cases where the rentals approach was tested:

5.3 Little Chef No LC 123, Great North Road, Skeeby, Richmond, North Yorkshire DL10 5EQ. Appeal Reference 272022267842/539N10 The decision in this case was to determine a revised assessment supported by a rental method valuation adopting a £/m² from a consideration of the most suitable rating comparables.

5.4 Warminster Services, Bath Road, Warminster, Wilts, BA12 7RY Appeal Reference 394023621506/541N10 Paragraph 11: “…the Panel was satisfied that the rental method of valuation, as adopted by the VO for the 2010 rating list for roadside restaurants, was appropriate in this case…”

5.5 In each case the agent argued for a receipts based valuation based on the percentages adopted for the 2005 List. In both cases the VT decision has been to adopt the rentals approach. Neither case was appealed to the Lands Chamber of the Upper Tribunal.

6. Survey requirements

6.1 Inspections should be carried out in accordance with the Valuation Office Agency Code of Practice.

6.2 Previous advice has been to data capture areas on a Net Internal Area (NIA) basis with Gross Internal Area (GIA) also being noted so as to enable comparison with Drive-to and Drive-thru restaurants. See also paragraphs 6.3 and 8.4 below.

6.3 However, roadside restaurants should properly be measured to GIA for rating purposes in accordance with the RICS Code of Measuring Practice 6th edition or its replacement.

6.4 In the absence of rental evidence, direct assistance can be derived from Drive-to sites where rents are analysed to GIA.

6.5 Historically, different valuation scales have been adopted around the country and in different Billing Authority areas within Units. Also, air conditioning, parking and outside seating have been treated differently, sometimes reflected in the main space value and sometimes valued as other additions.

6.6 This guidance note recommends adherence to the following practices for data capture and recording in the Rating Support Application (RSA):

Air conditioning

6.6.1 A description of the air-conditioning system should be recorded with the inspection notes. The distribution of the air-conditioning units should be shown on the plan saved in EDRM. Details of any air-conditioning systems should be noted in survey data remarks in RSA including a description of the type of system, the number of units and what areas are covered.

Sprinklers

6.6.2 Fire protection systems, sprinklers etc. found on inspection should be recorded on the survey and a note made in survey data remarks in RSA.

Car parking

6.6.3 Details of the number of car parking spaces should be noted on the survey saved in EDRM. The number of spaces should be entered in the appropriate part of the survey data in RSA.

Outside seating

6.6.4 A description of the outside seating area should be recorded with the survey saved in EDRM. This information should also be copied into the survey data remarks in RSA including the total area, type of hard surface and number of place settings.

Plant and machinery

6.6.5 Details of any items of plant and machinery present should be included in the inspection notes. Each item should be recorded individually in RSA. The most likely item of Plant and Machinery to be found at these premises is CCTV. For rateability and valuation, reference should be made to the relevant list year of the cost guide.

Quality

6.7 Adjustments should not be made for quality other than in exceptional circumstances.

Key rents

6.8 All properties where a key rent has been identified must be inspected.

7. Survey capture

7.1 Rating surveys should be captured on the Rating Support Application (RSA) and the completed checklist, plans and survey sheets stored in the property folder of the Electronic Document Records Management (EDRM) System.

8. Valuation approach

8.1 The comparative rental approach is the principal method of valuation to be adopted as a significant body of rental evidence exists. It will be necessary to adjust inclusive rents in terms of rateable value. When adjusting and analysing shell rents it is recommended that an addition of 10% be added to the rent for fit out.

8.2 Rents being paid by some traditional Roadside Restaurant franchisees may not be at-arms-length. Each transaction should be scrutinised for connections between the parties.

8.3 Rents paid by new occupiers should be adjusted for fitting out costs where appropriate. If fitting out involves more than just a corporate make-over, full details of fitting out costs, including additional floor space provided, should be sought, with a breakdown between rateable and non-rateable works if possible.

8.4 The two approaches to data capture and valuation recommended are as follows:

Gross Internal Area (preferred method of measurement)

Valuation Scale - see Practice Note for relevant list year scale

Parking - noted on survey reflected in valuation

Air Conditioning - noted on survey reflected in valuation

Outside Seating - noted on survey reflected in valuation

Net Internal Area

Valuation Scale - see Practice Note for relevant list year scale

Parking - noted on survey added as car spaces

Air Conditioning - noted on survey valued as an ‘other addition’

Outside Seating - noted on survey valued as an ‘other addition’

9. Valuation support

The following sources are available to Property Inspectors and Valuers dealing with all types of rating work for Roadside Restaurants.
- Rating Support Application (RSA)
- Survaid
- Retail 3 Class Co-ordination team
- National Valuation Unit (NVU)
Appendix 1 - Inspection checklist

This inspection checklist should be used for Drive-to; Drive-thru and Roadside Restaurants and completed on site. Whilst carrying out the survey, special attention should be given to the following features:

Roadside restaurants inspection checklist (https://assets.publishing.service.gov.uk/media/67bc9b80ba253db298782d06/Roadside_restaurant_checklist_app_1.docx)

Practice note: 2023 - roadside restaurants

1. Market Appraisal

1.1 Historically the term ‘Roadside Restaurant’ would have been synonymous with the traditional Roadside Restaurant chains modelled on American diners. Most of the restaurants were located on A-roads and often paired with a budget hotel and a petrol station. These sites which serve the motorist will be signposted ‘Services’ from the A road.

1.2 Originally the chain had little competition, but gradually more and more main roadside restaurants have been built for the well-known fast food chains. Also, refurbished petrol filling stations have opened branded shops. Well-known coffee chains have also opened café and drive-thru premises for motorists. The sandwich/ coffee and fast-food markets have grown at the expense of the sit-down Diner. As Motorway coverage has increased A-roads have become less favoured for long-distance travel.

1.3 There was a period which overlapped the end of the 2005 List and beginning of the 2010 List when some traditional Roadside Restaurant sites changed hands although some remained closed and vacant. Since 2012-14 there has been resurgence in the market in the South of England. Most buildings are now occupied and gaps in main road services provision has resulted in the development of new sites such as on the A30 and the A303. Elsewhere, former traditional Roadside Restaurant sites are as likely to have been demolished or changed to an alternative use as to have been re-occupied or re-developed as restaurants serving the motorist.

1.4 There is rental evidence for this class of property and local information is key to determining the rateable value of the subject hereditament.

2. Changes from the last practice note

2.1 The 2017 Practice Note advised data capture to GIA and valuation on the comparative rental approach, but it also recognised that it would not be possible for all Units to alter the survey data to GIA in time for that Revaluation. The advice is unchanged and it is still recommended that the adoption of GIA be carried out where possible. See Rating Manual Section: 880 paragraphs 6.2, 6.3 and 8.4 for further details. The comparative rental approach is still considered to be the correct method of valuation.

2.2 This Practice Note continues the guidance that the best rental evidence will come from Roadside Restaurant sites and Drive-to restaurants and advises valuers to be clear on the differences between Roadside Restaurant sites which serve the passing motorist and other types of restaurants in the same general locality when identifying the rental evidence that supports the Roadside Restaurant valuation scheme for the Unit.

3. Ratepayer discussions

3.1 Discussions with agents have not been undertaken for the purposes of Revaluation 2023.

4. Valuation scheme

4.1 Valuations should be in an address-based matrix across a range of Billing Authorities.

4.2 Where possible sub-location code ‘ROAD’ should be adopted.

4.3 The valuation scales to adopt are:
- for surveys based on measurement to GIA (the correct survey method – see Rating Manual Section: 880 paragraphs 6.3 and 8.4) use valuation scale V1SDRIVEIN1
- for surveys based on measurement to NIA (see Rating Manual Section: 880 paragraphs 6.2, 6.3 and 8.4) use valuation scale V1PROVA31
4.4 Car parking should be reflected in the unit value and the car parking table V1REFLECT1 adopted.

4.5 There should be a separate ‘other additions’ table for this class.

Practice note: 2017 - Roadside restaurants

1. Market Appraisal

1.1 Little Chef was established as a chain of roadside restaurants in the UK in 1958, modelled on American diners. The chain expanded rapidly in the 1970s and 1980s and acquired Happy Eater in 1986. At its peak the chain included 439 restaurants including Little Chef branded outlets at motorway service areas. Most of the restaurants were on A roads and often paired with a Travelodge motel and a petrol station. Numbers of sites have reduced to under 100.

1.2 Little Chef has been owned by different companies over the years. In October 2005 Little Chef and Travelodge were sold and split.

1.3 From inception the chain had little competition but gradually more and more main roadside restaurants have been built for chains such as McDonalds, KFC and Burger King. Refurbished petrol filling stations have opened shops such as Marks and Spencer Simply Food and the Wild Bean Cafe concept. Coffee chains such as Costa and Starbucks have opened premises for motorists. The sandwich/ coffee and fast-food markets have grown at the expense of the sit-down diner. With the construction of more motorways it is also the case that A roads have become used less for long-distance travel.

1.4 In April 2013 R Capital offered 78 Little Chef outlets to the market.

1.5 Some key dates post 1st April 2008 are as follows:

1.7 There is rental evidence for former Little Chefs newly occupied by private restaurateurs and also coffee or fast food chain franchises. Having regard to local information is key to determining whether individual values are higher or lower than 2010 List assessments. Whereas two or three years ago there would have been a significant number of vacant sites, at 1st April 2015 this is no longer the case and therefore there should be rental evidence available from new occupiers.

2. Changes from the last Practice Note

2.1 The 2010 Practice Note advised data capture to NIA and valuation on the comparative rental approach.

2.2 This Practice Note recognises that it will not be possible for all Units to alter the survey data to GIA in time for this Revaluation but recommends that this be carried out where possible. The comparative rental approach is still considered to be the correct method of valuation.

2.3 This Practice Note has the additional guidance that the best rental evidence will come from Roadside Restaurant sites and Drive-To restaurants and advises caseworkers to be clear on the differences between Roadside Restaurant sites which serve the passing motorist and other types of restaurants in the same general locality, in particular when identifying the rental evidence that supports the Roadside Restaurant valuation scheme for the Unit.

3. Ratepayer Discussions

3.1 Discussions with agents have not been undertaken for the purposes of Revaluation 2017.

4. Valuation Scheme

4.1 Valuations should be in an address based matrix across a range of Billing Authorities.

4.2 Where possible sub-location code ‘ROAD’ should be adopted.

4.3 Car parking should be reflected in the unit value and the car parking table WCREFLECT1 adopted.

4.4 There should be a separate ‘other additions’ table for this class.