In this article, we analyze the restaurant market in Germany and provide you with the latest statistics. Analyzing the German case allows us to understand the dynamics of the European market.
It is an understatement to say that the Covid crisis has turned the restaurant sector upside down. But the post-Covid period is just as complicated: inflation and a drop in attendance, an explosion in the number of bankruptcies; … All the indicators are flashing red. The German restaurant market offers a remarkably interesting market research area for understanding what is happening in all European countries. The ingredients of disaster are indeed the same in many countries: changes in behavior, inflation, high fixed costs, and declining purchasing power.
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Restaurants: key figures for the German market
- -13%: decrease in visits to all types of restaurants (classic fast-food restaurants, collective catering) between 2019 and 2024. In 2019, the number of visits was 9.62 billion for all of Germany. It is 8.37 billion in 2024.
- -17%: Loss of turnover: The overall turnover of the restaurant industry (excluding cafés and canteens) in 2024 amounts to 67.9 billion euros, a decrease of 17% compared to 2019.
- +32.4%: the increase in prices in traditional restaurants between 2020 and 2024
- +23.9%: the increase in fast food prices between 2020 and 2024
- +19.7%: the increase in canteen prices between 2020 and 2024
- 44%: the proportion of self-employed people in the restaurant industry, down 20 points compared to 2017. The number of independent restaurant owners has fallen from 64% to 44% in 7 years, due to the closure of establishments.
- +56%: while the income of traditional restaurants fell by 12% between 2017 and 2024, fast-food outlets increased by 56%.
- +12%: the fast-food market share increased between 2017 and 2024.
- +5%: the increase in fast food consumption in Germany in 2024
- +17% increase in bankruptcies between: In 2025, 1,475 establishments are expected to go bankrupt, an increase of 17% compared to 2022.
- According to a survey, 70% of consumers say they have cut back on eating out.
The restaurant sector is under pressure in all European countries. This pressure is reflected in many ways you have already observed: limited opening days, two services (at fixed times) instead of one, and significant price increases. These symptoms are the outward signs of a deeper problem: declining profitability. Germany is a country about which we have a lot of data, and which gives us the opportunity, in this article, to conduct a mini-market research study.
Positioning is the most important marketing element in the restaurant sector today.
Less frequented restaurants and new consumer habits
In Germany, restaurants are facing a worrying situation: attendance is significantly lower than in the pre-Covid era. According to the latest data, restaurant visits fell by 13% in 2024 compared to 2019. This trend reflects a profound change in the habits of German consumers.
Consumers can no longer afford to frequent the same establishments as before. However, they are not ready to give up all the pleasures and are therefore turning to alternative consumption solutions:
- fast food and low-end restaurants
- home meal delivery
- ready-made meals to consume at home
- 4 reasons for the drop in attendance
The reasons for the decline in attendance are both structural and behavioral.
Rise in restaurant prices
Meal prices have increased by almost a third (+32.4%) since 2020. This increase is attributable to inflation, rising raw material costs, and increased operating expenses. Consumers are, therefore, turning to less expensive alternatives, such as home-cooked meals and home delivery.
The effects of the pandemic
Although the sector has shown signs of recovery (a steady increase in meals between 2020 and 2024), the 2024 level is still lower than 2019. New habits have been adopted, particularly with home delivery, which led to a 13% drop in attendance between 2024 and 2019. The number of visits in 2024 was 8.37 billion (all types of establishments combined: restaurants, fast food outlets, catering) compared with 9.6 billion in 2019.
Purchasing power under pressure
Due to the general increase in the cost of living, German households prioritize essential expenses, leaving less room for leisure and eating out. This pressure is also accentuated by the return of VAT at 19% on restaurant meals since the beginning of 2024 (instead of 7% previously).
Fast food gaining market share
Fast food outlets grew by 5% in 2024. There is a shift in spending from traditional establishments to cheaper ones. Consumers still want to treat themselves, but as their budget has shrunk, they are forced to turn to establishments at the lower end of the scale.
A sector under pressure
In 2024, Germany’s restaurant industry’s turnover (excluding cafés) stood at 67.9 billion euros. This is 17% less than in 2019. Month after month, the data shows that restaurant revenues are eroding. On the other hand, expenses remain the same because they are often fixed: lease and personnel in the first place. Profitability is decreasing and is therefore no longer sufficient to sustain the business.
This is leading to a wave of bankruptcies that is only growing. In 2025, 1,475 bankruptcies are expected in Germany, compared to 1,380 in 2024 (+7%). Independent restaurants are the hardest hit. They accounted for 64% of establishments in 2017 and now only represent 44% of the market. Market share has been captured by fast food.
What will the restaurant sector look like in the future?
A whole series of underlying trends will reshape the restaurant sector.
Digitalization
Home meal delivery is now a well-established practice. Restaurateurs who do not offer this type of delivery are cutting themselves off from part of their clientele.
Positioning
Restaurants with a “mid-range” positioning strategy will suffer, as do other sectors. There is now an extreme polarization between premium/luxury and low-end/cheap. The mid-range has become too expensive for the experience offered.
Differentiation
Differentiation is the counterpart of marketing positioning. More than ever, creating experiences to attract customers and leaving them with memorable souvenirs that will help build loyalty is necessary. However, this effort to differentiate is not within everyone’s reach. It requires budget and marketing skills, which many restaurant professionals lack
Conclusion: a sector at a crossroads
The restaurant industry in Germany is undergoing a period of profound transformation. This transformation is like that encountered in many other European countries. The sector is at a crossroads because positioning is perhaps the most important marketing element today. Restaurateurs must make existential choices if they want to survive. Solutions exist, but many independent restaurants will be unable to survive. Their market share is, therefore, set to shrink further.
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