The early years sector has changed significantly over the past few years. While much of the conversation has focused on funding reform, staffing pressures and consolidation, there has also been a quieter shift taking place beneath the surface. Operators are becoming more commercially aware, technology adoption is accelerating, and parents are placing increasing value on community-led, relationship-driven childcare.
These themes emerged clearly in a recent conversation with Avi Sethi and Sunil Unadkat of the Emperor Nurseries Group, alongside Leah Turner from Owen Froebel.
Founded in 2023, Emperor Nurseries Group has grown to three settings across Hampshire and Hertfordshire, with further expansion planned. As relatively new entrants to the sector, Avi and Sunil offer an interesting perspective. They have entered childcare during a period of operational change, evolving buyer behaviour and increasing professionalisation across the market.
What stands out is not simply their growth, but the clarity with which they describe the changing expectations of both operators and parents.
A more commercially aware sector
One of the clearest changes identified by Avi is the increase in first-time buyers entering the nursery market.
“We’re seeing more first-time buyers now, more appetite to get involved,” he explained. “Hopefully for the right reasons.”
That increase in interest reflects the growing visibility of the sector as a long-term business opportunity. However, it has also led to greater awareness around valuation, deal structures and operational performance.
“I think people are more commercially aware,” Avi noted. “Sometimes a bit unrealistically.”
This is something we increasingly see across the market. Nursery owners are more informed about valuation methodologies, EBITDA multiples and market activity than they were several years ago. In many ways, that is positive. Better-informed operators tend to make stronger long-term decisions. But there remains a gap between perceived value and operational readiness.
The reality is that preparation still has a direct impact on outcome. Strong occupancy, stable staffing, robust systems and clear financial reporting continue to underpin attractive businesses. Awareness alone does not replace operational quality.
Technology is no longer optional
Another notable shift discussed was the pace of technological adoption across the sector.
Avi reflected that, only a few years ago, many nurseries still relied heavily on paper-based systems and manual administration. Today, that picture looks very different.
“We’re seeing everyone adopt some really good systems,” he said. “Actually, it’s quite a seamless transition where we’re in. It’s not as hard as it was three years ago.”
What is particularly interesting is that this change is no longer confined to larger groups. Smaller independent settings are increasingly investing in nursery management software, funding systems and parent communication platforms, often driven by operational necessity rather than ambition alone.
Leah highlighted how this reflects a wider trend of gradual consolidation within the market, where operational standards and business tools begin filtering down across operators of all sizes.
There is also an important human element to this transition. As Avi explained, introducing new systems can initially create resistance within teams, particularly where long-standing processes are deeply embedded. Yet, when implemented properly, the gains become difficult to ignore.
“We promise you, you’re going to say, ‘Wow, what used to take me three days, I do in two hours now.’”
That operational efficiency matters increasingly in a sector where management time is stretched and staffing remains one of the largest pressures facing providers.
Parents are prioritising community and connection
Perhaps the most important insight from the discussion centred on changing parental expectations.
Sunil described a growing demand for nurseries that feel embedded within their local communities, where relationships matter as much as facilities.
“Parents are wanting to make sure that their nursery feels part of their community,” he explained. “That the nursery really knows their child, values their child, knows the family.”
This reflects a broader shift in how parents view childcare. Nurseries are no longer seen simply as a service or logistical necessity. For many families, they have become a central part of day-to-day life and child development.
“The key value that we have is actually other than parents, nursery staff and nurseries are where children spend more time than other family members,” Sunil said. “We’re part of the family.”
That observation is significant. It helps explain why independent branding and local identity are becoming more valuable, even as larger groups continue to expand nationally.
Parents increasingly want reassurance that their child is known personally, not processed operationally.
The rise of the mid-sized nursery
Alongside this, Avi identified another emerging trend: increasing parental preference for smaller and mid-sized settings.
“We’re actually hearing a lot of demand going, ‘My child’s not fitting in in this massive environment,’” he said.
In particular, Emperor Nurseries has seen growing interest in settings that sit within the 40 to 60 place range, where parents feel every staff member knows their child and relationships remain highly visible.
This does not diminish the role of larger operators, many of whom run exceptionally high-quality settings at scale. However, it does suggest that emotional experience and perceived intimacy are becoming increasingly influential in parental decision-making.
As consolidation continues, the operators who succeed long term may be those who balance commercial scale with local identity and operational warmth.
A sector continuing to mature
What this conversation ultimately highlights is a sector becoming more sophisticated, both operationally and commercially.
Technology adoption is accelerating. Buyers are becoming more informed. Parents are becoming more discerning. And operators are increasingly recognising that sustainable growth depends not only on scale, but on culture, consistency and trust.
For businesses like Emperor Nurseries Group, that presents opportunity. Their growth reflects a broader market demand for operators who combine professional standards with genuinely community-led environments.
For the wider sector, it reinforces an important point. The nurseries creating long-term value are rarely those focused solely on expansion. More often, they are the ones building operational quality, strong local reputation and meaningful relationships with families over time.
