- Foodservice spending grew by +1% in Q1 across the Big 5 European markets
- Digital channels, dinner occasions, promotions and the return to the office drive new growth opportunities for the restaurant industry
- Younger consumers drive a major shift toward snacking, as meal occasions lose ground
The Circana Group, which consists of Circana, LLC, and its subsidiaries and affiliates (“Circana”), a leading advisor on the complexity of consumer behavior, reports that the European restaurant industry closed Q1 of 2025 navigating a complex and volatile environment shaped by rising costs, economic uncertainty, and shifting consumer behavior.
As the cost-of-living crisis continues to impact household spending across the continent, the industry also faces heightened concern over U.S.-imposed tariffs on key trade partners. With price growth and geopolitical tension, industry players are increasingly worried about declining traffic and reduced consumer confidence, raising questions about the restaurant sector’s resilience in the months ahead.
Based on Circana’s CREST® consumer panel data, European foodservice traffic declined by -1% in Q1 compared to the same period last year, while consumer spending grew by +1% despite fewer visits, driven by an increase in average restaurant check growth.
Edurne Uranga, VP Foodservice EMEA at Circana, explained: “The industry is getting more competitive. However, there are common growth drivers observed in Europe that help to partially offset the traffic shortage and will drive future growth opportunities for those who take advantage of it.”
- Digital occasions, including Click&Collect & Digital Food Delivery, are responsible for 7% of the total traffic and grew by 7%
- Dinner occasions outperformed the market and grew +1%
- 42% of all foodservice occasions include some kind of promo and grew by 2%
- A growing return-to-office resulted in +0.3% traffic growth of workplace and school canteens
Snacking surges as consumers shift away from traditional mealtimes
As the UK’s foodservice industry navigates ongoing economic pressures, one bright spot is emerging: snacking. According to new data from Circana, snacking occasions, especially in the afternoon and evening, are showing double-digit growth, up 13% and 14% respectively year-on-year (Circana, CREST®, YE March 2024), even as traditional meal occasions stagnate.
The shift is driven largely by younger consumers. Visits among 25–34-year-olds have surged by 23%, making them the primary force behind this change. In total, over 50 million visits have moved from traditional meals to snack occasions in the past year, including 30 million from lunch alone, and 10 million each coming from breakfast and dinner. (Circana, SnapMyEats®, YE March 2024).
This evolving behavior is being fuelled by more flexible lifestyles, remote work, and a desire for affordable yet satisfying options. In response, foodservice operators, from QSR chains and convenience retailers to fast-casual and full-service restaurants, are adapting with smaller product formats, all-day snack deals, and off-peak menus that help drive traffic and optimize kitchen operations.
For FMCG brands, this presents a timely opportunity to innovate and invest in snacking solutions that meet consumers where they are, both in mindset and moment.
Seton Leung, Head of UK Foodservice at Circana, said: “Snacking isn’t just a side note, it’s becoming the main event. As consumers rewrite the rules of how they eat, brands and operators that embrace this shift will be best positioned to win.”