Restaurants in the United Kingdom - statistics & facts
Internationally, the United Kingdom might not have the best reputation when it comes to its culinary staples. However, considering it is home to hundreds of Michelin-star restaurants, the UK has a fine-dining scene that belies this reputation, and establishes it as one of the world’s leading countries for luxury eateries. When it comes to low-cost dining options, the UK also has a wide range of branded and independent establishments, such as Pizza Express, Toby Carvery, and Nando’s, which consistently rank among the UK’s most popular dining brands. With Nando’s alone having nearly 500 restaurant locations across the UK, it is safe to say that affordable, recognized brands form the backbone of the UK’s restaurant industry.
Regarding consumer spending on UK restaurants and cafés, expenditure reached record highs in 2023, reaching over 130 billion British pounds. However, this is likely more down to restaurants becoming more expensive rather than consumers dining out more, as seen with the consumer price index (CPI) of restaurants and cafés in the UK increasing sharply from 2021 to 2023.
With the ongoing cost of living crisis in the UK, there has also been an increased tendency among UK consumers to cook for themselves, with nearly half of the participants in a recent survey saying they are eating out less because of financial constraints. Where this leaves UK restaurants in the long-term is unclear; however, it does not appear likely that consumers will completely lose their appetite for dining out any time soon.
How many restaurants are there in the UK?
In 2023, the market size of the UK’s restaurant sector grew by around five percent over the previous year, reaching close to 19 billion British pounds. However, while the market size of the UK’s restaurant industry has increased in recent years, the story is not one of simple growth. Namely, the number of licensed food and drink premises in Great Britain sank nearly continuously from 2017 to 2023, before rising marginally in 2024 to around 90,000. However, the number of restaurant and café employees in the UK was seemingly unaffected by the general decline in food and drink sites, and in fact grew from 2021 to 2022, reaching levels higher than before the coronavirus pandemic. This suggests that while restaurants became fewer in number, those that remained were able to expand their workforce.Regarding consumer spending on UK restaurants and cafés, expenditure reached record highs in 2023, reaching over 130 billion British pounds. However, this is likely more down to restaurants becoming more expensive rather than consumers dining out more, as seen with the consumer price index (CPI) of restaurants and cafés in the UK increasing sharply from 2021 to 2023.
Takeaways vs. dining out: what do UK consumers prefer?
Despite the increased costs of dining out, consumers continue to spend more on restaurants than any other catering service, with the average household spending 14 British pounds a week on restaurant and café meals in 2023. In comparison, spending on alcoholic drinks consumed out of home and takeaways totaled 5.6 British pounds and four British pounds, respectively. In the context of the expenditure of the UK’s different income groups on restaurant and café meals that year, this worked out at less two percent of the weekly household spend of those in the lowest ten percent decile group and nearly three percent of those in the highest ten percent.With the ongoing cost of living crisis in the UK, there has also been an increased tendency among UK consumers to cook for themselves, with nearly half of the participants in a recent survey saying they are eating out less because of financial constraints. Where this leaves UK restaurants in the long-term is unclear; however, it does not appear likely that consumers will completely lose their appetite for dining out any time soon.
