Restaurant closures mount as UK sector sees first decline
Being selective and budget-minded could help people keep eating out.
A report from Tampopo says that the number of restaurants in the UK fell in 2025—the first decline on record.
According to the UK Food Council, the total number of UK restaurants was down by 1.3% in 2025.
Tampopo’s report says that the downturn comes against what the company describes as a “perfect storm”: wary consumers, sharp cost increases, higher National Insurance contributions, one of the highest minimum wages globally, and amongst the highest VAT rates in Europe.
At the same time, people have more options than ever for how to spend their leisure budgets.
Tampopo founder David Fox says diners may need to be more selective about where they eat and choose menu items that fit their budgets, which he argues could help them continue eating out more often.
A separate report from Lumina Intelligence suggests service-led restaurant operators can still find opportunities through seasonal and limited-time offers, as well as partnerships, which can encourage visits and align with trends such as sustainable consumption, higher quality, and “eatertainment.”
It also notes that expanding into competitive socialising, live music, and other leisure events can draw broader audiences, whilst creating different zones—from quieter, work-friendly spaces to more social areas—can make venues more versatile.
