What Every Owner/Manager Needs to Know
Running a restaurant today is nothing like it was five years ago.
Costs are rising, staff are harder to find, and customers are changing how they eat, spend, and choose where to dine. If you’re a restaurant owner or manager in the UK, you’ve probably already felt this shift — and if you haven’t yet, it’s coming. Restaurant Industry Statistics & Trends 2025 unleash what most trends, restaurant managers and owners are experiencing right now.
In this article we’ve pulled together the most important, up-to-date stats, facts, and trends shaping the UK restaurant scene in 2025. This isn’t fluff. It’s real data, sourced from trusted industry reports, government records, and hospitality experts. Whether you run a single café or a nationwide chain, this guide will help you:
- Spot what’s changing in the market
- Compare your performance with the rest of the industry
- Make smart, confident decisions for growth
Let’s break it down in plain English — no jargon, no guesswork. Just the facts you need to know to stay ahead.
The Key UK Restaurant Industry Statistics & Trends for 2025
| Metric | Value | YoY Change |
| Total UK Restaurants (Active) | 89,600+ | ▼ 1.3% |
| Average Profit Margin | 7.5% | ▲ 0.4% |
| Average Labour Cost % | 31.2% | ▲ 1.8% |
| Average Food Cost % | 28.9% | ▲ 0.9% |
| Delivery & Takeaway Share | 27% of total revenue | ▼ 2.2% |
| Staff Turnover Rate | 38% | ▲ 3% |
| Average Customer Spend (per head) | £21.45 | ▲ £0.85 |
| Online Booking Usage | 63% of reservations | ▲ 5.1% |
Source: Office for National Statistics (ONS), Statista, OpenTable UK, Toast POS, UKHospitality
Understanding the numbers behind the industry is the first step to staying profitable. The UK restaurant scene in 2025 is showing both pressure points and areas of opportunity — but only if you know where to look. Let’s unpack the most up-to-date stats that matter for restaurant owners.
Total Number of UK Restaurants: 89,600+
There are just over 89,600 active restaurants across the UK, according to data from the Office for National Statistics (ONS). That number is slightly down from last year — a 1.3% decrease. The drop reflects ongoing closures, especially among independent businesses struggling with rent, energy costs, and reduced foot traffic.
What this means for you:
There’s less competition in some areas — but demand hasn’t vanished. Consumers still want to eat out. The key is to offer clear value, consistency, and convenience. Restaurants that invest in experience and smart pricing are outperforming others.
Profit Margins Are Recovering — But Still Tight
The average profit margin for UK restaurants is now 7.5%, a small improvement from 2024. But let’s be real — this is still below what restaurants used to earn before COVID-19 hit the industry hard.
Smaller independent restaurants, especially those with under 40 seats, are seeing thinner margins — often just 4% to 6%. In contrast, well-managed restaurant chains with multiple locations are doing better, with margins reaching 10% to 12%, thanks to bulk purchasing, centralized operations, and streamlined systems.
Key takeaway:
Margins are slowly improving, but they’re still tight. Every percentage point matters. To stay profitable in 2025, restaurant owners need to focus on smart pricing and tight cost control.
Food & Labour Costs Are Still Climbing
The Numbers:
Average Food Cost: 28.9% of revenue
(Target: Keep it under 30%)
Labour Cost: 31.2% of revenue
(Target: Ideally between 25%–30%)
Both food and labour costs have gone up again this year. Rising wages, higher ingredient prices, and supply chain delays are hitting the bottom line hard.
In 2025, front-of-house jobs are harder to fill. Staff shortages are driving wages up by an average of 5.4%, especially in urban areas. Back-of-house roles aren’t far behind, as experienced chefs become harder to retain without offering higher pay or better conditions.
What you can do right now:
- Simplify Your Menu
- Cut low-performing dishes and focus on items that use overlapping ingredients. This helps reduce waste, inventory costs, and kitchen complexity.
- Use Smart Scheduling Tools
- Labour is your biggest expense — but often also your biggest area for savings. Use scheduling software to match staffing levels to peak hours, cut down on overtime, and make sure you’re not overstaffing during slow shifts.
- Raise Prices — But Do It Strategically
- Don’t raise prices across the board. Instead, look at high-margin items or popular dishes where a small price increase won’t hurt customer satisfaction. Even an extra £0.50 per plate can have a major impact when done wisely.
Staff Turnover Is Now 38% — A Growing Challenge
According to UKHospitality, staff turnover in the restaurant industry has reached 38% in 2025. That’s alarmingly high — and it’s putting real pressure on restaurant operations.
Kitchen staff are being hit hardest. Chefs and kitchen porters are among the toughest roles to fill and keep. Many leave within months due to long hours, stress, or better-paying opportunities in other industries.
And it’s not just about hiring. It’s about staying open.
Nearly 1 in 3 restaurants across the UK reported cutting their opening hours because they couldn’t staff all shifts consistently. That means lost revenue, frustrated customers, and exhausted teams.
How to Improve Staff Retention in 2025
If you’re losing staff faster than you can train them, here are three proven strategies that actually work:
- Offer Clear Training & Growth Paths
Show your team a future. Even simple things like certifications, promotions, or specialized skills training can motivate staff to stay longer. When people know there’s room to grow, they’re more likely to stick around.
- Improve Onboarding
First impressions matter. A solid onboarding process — including job shadowing, clear expectations, and a friendly welcome — can reduce early exits. Staff who feel prepared and supported in their first 30 days are far less likely to quit.
- Use Anonymous Staff Feedback
Give your team a voice. Short, regular feedback surveys help you catch problems early — like poor management, toxic behavior, or unclear processes — before they drive people out the door.
Key takeaway:
Hiring is hard, but keeping great people is where you win in 2025. Focus on building a workplace where people feel valued, supported, and heard.
Delivery & Takeaway Down Slightly — Dine-In Is Rebounding
After years of growth, delivery and takeaway have dipped slightly in 2025. They now make up 27% of total restaurant revenue, down from 29.2% in 2024, according to industry data from ONS and Toast POS.
What’s behind the drop? Simple: people are going out again.
Customers are craving real experiences — especially for social events, celebrations, or premium meals. The rise in dine-in demand is being felt most in mid-range and upscale venues, where ambience and service matter as much as the food.
Still, delivery isn’t dead. It remains crucial for fast casual brands and quick-service restaurants (QSRs), where it can make up to 40% of total orders. These businesses continue to rely on platforms like Deliveroo, Uber Eats, and Just Eat to keep orders flowing.
Smart Strategy: Turn Delivery Customers Into Regulars
Third-party platforms are great for getting discovered — but they eat into your profits, charging fees that can slice 20–30% off your revenue per order.
Here’s how to make delivery work smarter:
- Use Platforms to Acquire — Not Retain
- List your restaurant on major delivery apps to attract new customers. It’s digital visibility — not loyalty.
- Build Your Own Ordering System
- Encourage repeat customers to order directly from your website or app. Offer small perks like free delivery, loyalty points, or special menu items they can’t get anywhere else. This boosts profits and keeps you in control of the customer experience.
- Collect Data, Not Just Orders
- When people order through your own channels, you gain access to email addresses, order history, and preferences — data you can use to personalise marketing and boost repeat visits.
Bottom line:
Delivery isn’t going away, but its role is shifting. Use it wisely to grow your brand — not just pad your revenue.
63% of Reservations Are Now Booked Online
In 2025, digital bookings are the new normal. A full 63% of all restaurant reservations in the UK are now made online — either through your own site, a booking platform, or apps like OpenTable, Resy, and Google Reserve. That’s up more than 5% from last year.
Why the shift? It’s simple: convenience. Customers want to book in seconds, get confirmation instantly, and avoid awkward phone calls. And they expect it to work smoothly on mobile.
Restaurants that make booking frictionless are seeing more covers — and fewer gaps in their schedules.
Actionable Insight: Maximise Your Digital Booking Game
Want to turn more clicks into covers? Here’s how to make your online reservations work harder for you:
- 1. Optimise Your Google Business Profile
- Make sure your restaurant appears on Google Maps and Search with live booking buttons. Link directly to your reservation platform so diners can book without leaving the page.
Pro tip: More than 70% of diners check Google before booking a table.
- 2. Reduce No-Shows with Reminders
- Use automated SMS and email reminders to reduce no-shows. Platforms like ResDiary, SevenRooms, and OpenTable offer this built-in. A simple text 24 hours before the booking can cut no-show rates by up to 30%.
- 3. Connect Bookings to Your CRM or POS
- When your reservation system is linked to your CRM or POS, you can track guest preferences, average spend, and visit frequency. This lets you offer personalised service, targeted offers, and loyalty perks that keep people coming back.
Key takeaway:
Online bookings aren’t just a convenience — they’re a competitive edge. If your system is clunky, outdated, or missing entirely, you’re losing out on revenue before guests even arrive.
Top Growth Opportunities in 2025
The UK restaurant industry isn’t just surviving — it’s evolving. Despite rising costs and staffing challenges, opportunities for growth are everywhere if you know where to look. In 2025, success will belong to operators who adapt fast and deliver what modern diners actually want.
Here are four clear areas where restaurants are growing — and how you can tap into them:
1. Health-Focused Menus Are Driving Demand
Today’s diners care about what’s in their food — and how it makes them feel. Recent surveys show that 1 in 5 UK consumers prefer plant-based or flexitarian options, especially among Gen Z and Millennials.
This isn’t just about vegan dishes — it’s about cleaner ingredients, gluten-free alternatives, low-carb swaps, and gut-friendly choices like fermented foods or probiotic drinks.
How to win:
Add a small section of plant-based or health-conscious dishes to your menu
Highlight ingredients like whole grains, seasonal vegetables, and plant proteins
Use symbols or short descriptors to make healthy options easy to spot
2. Hyper-Local Sourcing Builds Trust & Cuts Risk
Sourcing ingredients locally and seasonally is no longer just a trend — it’s becoming a smart business move.
Why? Local sourcing:
Reduces supply chain volatility (less risk of delays or price spikes)
Builds a stronger brand story that customers can connect with
Supports regional farms and producers, creating community goodwill
Restaurants that showcase where their food comes from — and why it matters — are earning more loyal, repeat guests.
How to win:
Highlight local suppliers on your menu or social media
Use terms like “sourced within 50 miles” or “from Cornwall waters” to show transparency
Feature seasonal specials to align with fresh availability
3. Experience-Led Dining Is on the Rise
People aren’t just going out to eat — they’re going out for an experience. That means more than just good food. It’s about ambience, interaction, and memorable moments.
In 2025, we’re seeing a rise in:
Chef’s tables and tasting menus
Theme nights and live cooking demos
Pop-ups, collabs, and in-house events
These don’t just drive higher spend per head — they create buzz, media attention, and word-of-mouth marketing.
How to win:
Offer limited-seating events to create exclusivity
Promote through email and social channels with early access or VIP pricing
Train staff to sell the experience — not just the dish
4. Fast-Casual Franchises Are Expanding in Regional Towns
While big cities remain competitive, fast-casual concepts are growing fast in smaller UK towns — especially those offering delivery, efficient service, and lower price points.
Franchise models are leading the way. Why? Because they offer:
Lower startup costs compared to full-service restaurants
Scalable menus and systems
Higher efficiency per square metre
Operators who choose the right location and maintain strong quality control are seeing rapid ROI, especially outside of London, Manchester, and Edinburgh.
How to win:
Explore fast-casual licensing or franchise opportunities
Look for towns with rising populations but limited dining variety
Focus on speed, quality, and value — the key trio for fast-casual success
Key takeaway:
2025 isn’t about doing more of the same — it’s about adapting to what’s next. Whether it’s menu innovation, sourcing smarter, or creating unforgettable experiences, the restaurants that lean into these trends are the ones set to grow.
Related articles:
Top 10 Most Profitable Fast-food Franchises
Final Thoughts: Stay Focused, Stay Flexible
The UK Restaurant Industry Statistics & Trends shows the industry is stabilising — but let’s not pretend it’s smooth sailing. Between rising costs, staff shortages, and changing customer expectations, this year is testing even the most seasoned operators.
But here’s the good news:
You’re not powerless.
The data shows clear paths forward — and the restaurants that are paying attention, staying flexible, and investing in their teams are already pulling ahead.
What the Best Operators Are Doing Right Now:
Tracking key metrics like food cost %, labour %, and profit margins monthly
Streamlining menus and tightening supplier relationships to control costs
Doubling down on retention through better training, culture, and communication
Building customer loyalty with standout experiences and smart tech integrations
Looking ahead, not just reacting to today’s problems
The landscape has changed — but so have the tools and opportunities.
Whether you’re running a small bistro or managing a multi-unit chain, the challenge for 2025 is clear:
Adapt with intent, act with data, and lead with purpose.
Stay sharp. Stay local. Stay human. That’s how you win in this business now.