The UK Restaurant market in 2024 is worth £23 billion and is projected to grow to £27 billion by 2029, with a 4.2% CAGR.
Our figures are based on our analysis of four different market research reports. However, our confidence in these figures is reasonably strong due to the converging nature of the estimates. A detailed description of our analysis methods is below.
Market Size and Growth Metrics
Current Size and Growth Projections
As of 2024, the UK Restaurant market is valued at about £23 billion. Looking ahead, the market is expected to grow at a CAGR of 4.2%, reaching £27 billion by 2029.
This growth is driven by diverse consumer preferences and innovative dining experience.
Major Market Segmentation
By Type
- European Cuisine: Continues to lead the UK restaurant market, holding a 46.92% share of the market in 2024. This segment includes popular dishes such as Italian, French, and traditional British fare.
- Asian Cuisine: Remains a strong contender, benefiting from the increasing popularity of Indian, Chinese, and Japanese dishes. This segment is projected to grow significantly, driven by consumer interest in diverse flavors.
- Latin American Cuisine: Recognized as the fastest-growing segment, with a projected compound annual growth rate (CAGR) of 7.91% from 2024 to 2029. The rise in popularity of Mexican food is a key factor in this growth.
- Middle Eastern Cuisine: Also gaining traction, reflecting a broader acceptance of varied culinary traditions in the UK.
- Chained vs. Independent Outlets: Independent outlets dominate, accounting for 67.55% of the market share in 2023, while chained outlets are expected to grow at a CAGR of 7.07% from 2024 to 2029, fueled by expansion in urban areas and tailored menu offerings.
By Region in The UK
- London: The largest market for restaurants, accounting for approximately 38% of the total UK restaurant revenue in 2024, with a diverse range of cuisines reflecting its multicultural population.
- Birmingham: The second-largest city, contributing around 10% to the overall market, known for its vibrant dining scene that includes a mix of traditional British and international cuisines.
- Manchester: Holds a 7% market share, recognized for its growing number of restaurants and food venues, particularly in the casual dining and fast-casual segments.
- Regional Preferences: Urban areas tend to showcase a broader range of international offerings, with cities like Leeds and Glasgow also emerging as significant dining destinations, each contributing about 5% to the market.
- Tourism Impact: Major cities attract both local residents and tourists, with London alone seeing an influx of over 20 million visitors annually, further boosting the restaurant sector’s growth.
Industry Trends and Dynamics
Rise of Health-Conscious Dining
40% of UK consumers now prioritize healthy eating when dining out, a significant increase from 2022.
65% of restaurants have introduced more plant-based options to cater to the growing demand for sustainable and ethical food choices.
Over 75% of restaurants now provide information on the origin and production methods of their ingredients, meeting consumer expectations for transparency.
Emphasis on Experience
45% of restaurants host themed events and pop-ups, such as wine tastings and cooking classes, to create memorable experiences for customers.
70% of restaurants have designed their interiors to be visually appealing and “Instagrammable,” recognizing the importance of social media in attracting and engaging customers.
80% of restaurants focus on providing personalized service, tailoring the dining experience to individual preferences and dietary requirements.
Industry Drivers and Challenges
Demand for Diversity
The demand for diverse culinary experiences continues to drive growth in the UK restaurant market, with 45% of consumers expressing a desire for more international cuisine options in 2024.
Restaurants offering a variety of cuisines and innovative dishes are seeing a 25% increase in customer visits compared to those with limited menus.
Focus on Sustainability
62% of UK consumers prioritize sustainability when choosing where to dine, influencing restaurants to adopt eco-friendly practices and menu items.
Establishments that emphasize locally sourced ingredients and sustainable practices have reported a 30% increase in sales over the past year.
Rising Operational Costs
The restaurant industry is grappling with rising operational costs, with food prices increasing by an average of 15% in 2024, significantly impacting profit margins.
Labor costs have also surged, with the average wage for restaurant staff rising by 10% in response to ongoing staffing shortages.
Competition from Delivery Services
The growth of food delivery services poses a challenge, with 40% of consumers opting for takeout over dining in, leading to increased competition for traditional restaurants.
Many establishments are struggling to compete with the convenience and pricing of delivery options, prompting a reevaluation of their service models and menu offerings.
Consumer Insights
Per Capita Consumption
On average, UK consumers dine out approximately 3.5 times per month in 2024, indicating a growing trend towards social dining experiences.
Spending on dining out has increased by 10% year-over-year, reflecting a robust market for restaurants that cater to evolving consumer preferences.
Shifts in Consumer Preferences
There is a notable shift towards casual dining and fast-casual concepts, with 62% of consumers favoring these options for their convenience and quality.
Younger consumers, particularly those aged 18-34, are increasingly prioritizing experiences over material goods, with 55% indicating a preference for unique dining experiences.
90% of consumers report they can still afford to eat out despite cost-of-living pressures, showcasing resilience in the out-of-home dining sector.
Conclusion
In 2024, the UK Restaurant market is valued at £23 billion and is projected to reach £27 billion by 2029, with a 5.2% CAGR. Key takeaways include:
- Diverse Cuisine: The popularity of Latin American and Asian cuisines is growing rapidly, with Latin American cuisine projected to grow at a 7.91% CAGR.
- Health and Sustainability: 40% of consumers prioritize healthy eating, pushing 65% of restaurants to offer more plant-based options and transparent sourcing.
- Experiential Dining: Memorable, Instagram-friendly dining experiences are crucial, with 45% of restaurants hosting themed events and 70% focusing on design.
- Cost Pressures: Food and labor costs are rising, impacting profit margins, while 40% of consumers opt for delivery over dining in, increasing competition.
- Consumer Resilience: Despite challenges, dining out remains strong, with spending up 10% and consumers eating out 3.5 times per month.
The UK restaurant market faces significant challenges, but there is strong opportunity for those who adapt. Success will depend on meeting changing consumer preferences, embracing innovation, and balancing rising costs with quality and experience.
References and Data Sources
How did we analyze our Sources?
To gain a complete understanding of the UK Restaurant market, we’ve analyzed data from four different market research reports. Using our own weighted criteria, we selected the top three reports with the highest scores and based our estimate on their findings.
| UK RESTAURANT Analysis | Statista | Ibis World | Mordor Intelligence | Research and Markets | SUMMARY |
| Published Date | November 2023 | July 2024 | – | February 2024 | |
| Market Captured | – | – | – | ||
| Current 2024 market size | £19B* | £24B | £25B* | £25B | £23B |
| Future market size | £20B by 2026 | £26B | £34B by 2029* | £34B by 2029* | £27B by 2029 |
| CAGR | 1.5% (2014-2029) | 6.8% (2024-2029) | 6.8%(2024-2029) | 4.2% (2024-2029) |
Please note: Data marked with * is estimated based on original sources.
How did we grade our Sources?
| Score | UK RESTAURANT Analysis | Statista | Ibis World | Mordor Intelligence | Research and Markets | SUMMARY |
| 3 | – Criteria 1: Clear Source | 0 | 0 | 0 | 0 | |
| 2 | – Criteria 2: Recency | 0 | 1 | 0 | 0 | |
| 4 | – Criteria 3: Authority | 0 | 0 | 0 | 0 | |
| 1 | – Criteria 4: Objective & Clear | 1 | 1 | 1 | 0.5 | |
| SOURCE GRADE | 1 | 3 | 1 | 0.5 | 1.67 |
- 4 = Highly useful, clear, and resistant to manipulation
- 0 = Provides no indication of reliability
| 3 | – Criteria 1: Clear Source Citation | +1 IF: Clearly states where they got the data from. |
| 2 | – Criteria 2: Recency | +1 IF: published or updated the last 3mo. |
| 4 | – Criteria 3: Authority | +1 IF: Govt Agency, Academic Institution, Academic Paper
+1 IF anything else.
|
| 1 | – Criteria 4: Objective & Clear |
+1 IF: The information presented without emotional wording or bias, states the facts cleanly and clearly.
+0.5 IF one of the above.
|
How did we determine our Market Size?
Understanding the market’s direction can be challenging based on these estimates.
However, we are reasonably confident in our projections. The three sources show strong alignment with each other and other reports.
We encourage you to critically assess the data and consider various perspectives to form your own insights into the future of the UK Restaurant market.
Nathan has always been captivated by numbers and patterns. With a Master’s degree in Statistics, he’s honed his skills to decipher complex data sets and discern market trends.
Over the past decade, Nathan has worked with various firms compiling and analyzing industry spending figures to forecast market movements.