Sluggish consumer spending continues to hit restaurants
09 July 2025IGD’s new Away From Home service forecasts the number of independents will shrink as rising costs make way for group operators.
The number of full-service restaurants is set to decline 1% in 2025 as limited disposable incomes continues to impact visitor numbers. According to the latest insights from IGD’s new Away From Home (AFH) service, premium dining is likely to fare better than casual restaurants, as wealthier consumers continue to spend. Meanwhile, insights show that independents will struggle to shoulder rising costs, making way for more group operators.
Indies that effectively communicate their unique offerings and engage with changing consumer trends will likely perform better against a tough backdrop.
IGD also outlined opportunities for all operators, who should look to promote special occasions as well as drive efficiencies. At the same time, suppliers should seek ways to build stronger relationships with customers to drive loyalty.
These insights are part of IGD’s new AFH proposition, which kicked off with the launch of the AFH five-year market forecast for 2025-2030. The new service has been developed in recognition of the need for a whole-market viewpoint of the AFH sector and marks a significant milestone for IGD as its first new insight product for 15 years.
To find out more visit www.IGD.com
To view the sector report, click here
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IGD brings together stakeholders from across the food system, fostering action across on critical challenges across a broad cross section of forums. Through evidence-based insights, credible research, and thought leadership, IGD guides businesses to make informed decisions that not only benefit their operations but also contribute to the collective good of society. As a charity with a long-standing commitment to the food and grocery industry, IGD does not advocate for any single commercial interest but works towards fostering alignment on shared goals that can have a positive, lasting impact on both the industry and the communities it serves. Its neutrality and impartiality are key to its role in facilitating collaboration, whether through policy development or addressing emerging risks and opportunities. By staying connected to the changing dynamics of the world, IGD ensures that the food system remains robust and sustainable, creating tangible benefits for businesses, consumers and society.