A new survey of more than 200 London restaurants has revealed the sector is showing signs of growth after 48 per cent of participants reported an increase in profits during September.

According to Business Link's monthly Restaurant Barometer, 25 per cent of eateries in the capital had seen an increase in consumer spend and a 46 per cent rise in customer numbers, when compared with August. However, many London restaurants are still reporting a decrease in customer numbers (49 per cent), consumer spend (44 per cent) and profits (53 per cent), when compared with the same period in 2008.

Ashley de Safrin, business adviser for the hospitality sector at Business Link, said: "These results show that the restaurant sector continues to remain resilient in the face of the economic climate, with 75 per cent of respondents remaining profitable in this time. "The recession continues to affect the industry, however, particularly in areas such as customer spend. Customers remain cautious and the majority are opting for tap water, with many seeking special offers and promotions."