Fast-casual chicken chain seeks to convert vacant Holburn Street offices, addressing high vacancy rates and contributing to urban regeneration.
Pepe’s Piri Piri, a prominent UK fast-casual chicken franchise, has submitted plans to Aberdeen City Council for a new restaurant in the city centre. The proposal aims to transform former office premises at 79-81 Holburn Street, which have remained vacant since March 2025, into a dining establishment. This move aligns with broader initiatives to revitalise Aberdeen’s commercial core and tackle persistent property vacancies.
The application, lodged by Create Studio Architecture on behalf of the franchisor, highlights the ongoing challenge of attracting tenants for commercial properties in Aberdeen. The site has been “marketed extensively” without securing interest for either office or traditional retail use. If approved, the new Pepe’s Piri Piri restaurant is designed to accommodate approximately 48 diners and would involve internal modifications to the multi-storey building. Developers contend that bringing the currently empty building back into active use would contribute to the local economy and “support the vibrancy and vitality of the city centre.”
Aberdeen’s Shifting Commercial Landscape
Aberdeen’s commercial property market has faced significant headwinds, contributing to high office vacancy rates, particularly within older, secondary stock. Data from Q1 2026 reveals an overall office vacancy rate of 16.8% across the city, an increase of 90 basis points from the previous quarter. This situation has been exacerbated by a prolonged downturn in the oil and gas sector, a cornerstone of the city’s economy since the 1970s, coupled with evolving retail behaviours and the lasting effects of the COVID-19 pandemic.
While prime office rents held steady at £32.50 per square foot in Q1 2026, and Grade A availability has seen a significant reduction to just 1.1%, indicating a scarcity of top-tier space, the broader market reflects a “flight to quality.” Occupiers increasingly seek efficient, well-specified buildings, leading to a misalignment with much of the city’s legacy office stock. This trend makes change-of-use proposals, such as the one for Holburn Street, an increasingly common and vital strategy for urban regeneration.
Regeneration Efforts Take Shape
The proposed restaurant forms part of a wider transformation underway in Aberdeen’s city centre. The City Centre and Beach Masterplan, backed by a £150 million commitment from Aberdeen City Council, aims to create a more vibrant, inclusive, and sustainable destination. Key projects include the new market building, Flint, due for completion in early autumn 2027, and significant streetscape improvements along Union Street Central, expected by late summer 2026. Repurposing long-term vacant commercial units is a crucial element of these revitalisation efforts, as empty properties can negatively impact local communities and economies.
Pepe’s Piri Piri: A Growth Story in Fast-Casual Dining
Founded in London in 2007, Pepe’s Piri Piri has rapidly grown to become the UK’s largest piri piri chicken franchise, boasting over 250 locations nationwide. [cite: Source Article, 9, 16] The chain specialises in flame-grilled chicken with various spice levels, offering a fully halal menu and vegetarian options, and has expanded internationally into markets such as Pakistan and the UAE. This expansion reflects a significant growth trend within the UK’s fast-casual dining sector. The UK fast food market was valued at USD 60.65 billion in 2025 and is projected to reach USD 98.22 billion by 2034, driven by increasing demand for convenience, the growth of online delivery platforms, and evolving consumer lifestyles. The quick-service restaurant (QSR) market, a segment encompassing chains like Pepe’s, is also forecast for robust growth, with a CAGR of 5.23% between 2026 and 2031.
Despite rising operational costs, including wage inflation and energy, QSRs are focusing on value and convenience, with the 25-34 age group being a key driver of demand. Home delivery, for instance, remains the fastest-growing channel within the UK’s quick-service restaurant market.
Historical Use and Regulatory Pathways
The premises at 79-81 Holburn Street have a history of hospitality use, having operated as Little Italy Italian pizzeria until 2012, followed by Hey Brazil Brazilian BBQ house until around 2014, before becoming offices for the Aberdeen Drilling School. Holburn Street itself has been a bustling commercial thoroughfare since Georgian times.
You Might Also Like:
New Aberdeen burger restaurant aims to bring “quality-driven” dining experience to Union Street
Aberdeen Restaurant Weeks set to bring boost for city hospitality
Record participation and packed venues mark Aberdeen Restaurant Weeks success story
Elephant House reopens in Edinburgh with global ambitions and China expansion plans
The current application seeks a change of use from office space (likely Class 4, Business, under Scottish planning law) to a restaurant (Class 3, Food and Drink). Under the Town and Country Planning (Use Classes) (Scotland) Order 1997, such a change from one use class to another typically requires planning permission from Aberdeen City Council, as it constitutes a ‘material’ change in use. These change-of-use applications are becoming increasingly common across Scotland as businesses and landlords adapt to shifting market demands and contribute to urban revitalisation efforts.
