Restaurant market projected to be worth £105bn in 2025
FutureFoodservice predicts that the UK’s out of home dining market will grow by 2.4% in 2025.

FutureFoodservice predicts that the UK's out of home dining market will grow by 2.4% in 2025, reaching a total value of £105.3bn - a £2.4bn increase on the market size at the end of 2024.
The FutureFoodservice report, The Next 5 Years, 2025 to 2029, outlines predictions for growth in 2025 and beyond. It notes that despite the tax and cost increases in April, growth will come from consumers' greater ability to spend and from operators meeting demands with new concepts.
Budget blows
Despite the predicted growth, however, the sector will continue to be impacted by the October budget, in which chancellor Rachel Reeves confirmed that the National Living Wage would increase from £11.44 to £12.21 an hour from April 2025. The National Minimum Wage for 18- to 20-year-olds is also set to rise from £8.60 to £10.00 an hour.
While the cost challenges will lead to growing numbers of independent businesses closing, well-funded and managed branded operators will survive, expand and potentially thrive, notes the report, driven by increased disposable incomes and the UK's economic recovery.
Simon Stenning, founder of FutureFoodservice, said: "The hospitality/foodservice industry continues to face enormous challenges with increasing costs of labour and higher costs of doing business. We have to be cautious with our positive message in this report, as we recognise that not all businesses will survive the challenging conditions.
"It is easy to point out the opportunities from being creative, innovative and from investing in new concepts. However, many operators struggle to see what the future looks like after April. What we forecast is that attracting consumers is the key to success and that there will be many operators who do, and will continue to do so, over the course of the next five years."