New research shows British diners shifting from traditional pubs and restaurants to fast-casual and premium fast-food options:

• The cost of eating out has risen at more than twice the pace of retail food and beverage inflation - 2.6% versus 1.2%
• Restaurants and pubs see visits fall - 6.8% compared to a 0.9% rise for fast-food outlets
• Chicken restaurants perform strongly, while burger chains see biggest falls as beef prices increase
• Fast-food operators also add nearly 2% more stores in 2025, with Greggs and Popeyes leading the way

New reports shows British diners increasingly choosing fast-casual and premium fast-food options over traditional pubs and restaurants. The research found visits to restaurants and pubs fell by 6.8% last year, while fast-food traffic rose by 0.9%. However, much of this growth was driven by expansion, with outlet numbers increasing by nearly 2%, resulting in a 1% decline in like-for-like fast-food visits.

Bakeries led new openings, with Greggs launching the most new sites, while chicken chain Popeyes recorded the fastest % growth. Chicken restaurants also saw the strongest performance, with footfall up 5.9%, followed by coffee shops (3.6%) and bakery and sandwich shops (2.6%). Burger chains and ethnic fast-food outlets saw declines in visits.

Rising costs remain a key challenge. Office for National Statistics data shows food and beverage prices rose 4.5% year-on-year to December 2025, while fast-food prices increased even faster at 7.7%, reflecting higher labour, property and food input costs across the sector.

Maria Vanifatova, CEO and Founder of Meaningful Vision who conducted the survey, said:

Looking at our 2025 data, it’s clear that rising inflation has fundamentally changed how people eat out. Restaurants and pubs are facing higher costs, which leaves them with little choice but to push prices up to protect margins - and it’s difficult to see that changing, with further minimum wage increases this year likely to disproportionately affect hospitality. That is leading to more consumers trading down - switching to fast food and fast casual options that feel like better value.

“At the same time, the growth of Popeyes and Wingstop is indicative of new brands and concepts entering the market in the UK. And premium fast food brands, in particular, have digital in their DNA and are using that to their advantage, engaging with Gen Z audiences. For those reasons, we believe the rise of premium fast food, at the expense of casual dining, is a long-term trend that will continue to play out this year and into 2027.”