Casual dining 'in a recovery phase' in 2025

The casual dining sector will see further recovery in 2025 with brands looking to acquire new sites and reporting an uptick in margins, according to Christie & Co.

The property firm’s latest Business Outlook report said the number of full-service restaurants had fallen but predicted more growth in the sector this year off the back of strong profits.

It also forecast further expansion in the quick-service restaurant (QSR) sector, which saw a 10% increase in its number of outlets last year.

The report said menu inflation had dropped to 5% by the end of 2024, down from a peak of 27% as costs eased.

The average London restaurant rent per sq ft was £87 last year compared to £28 in Manchester and £50 for drive-through sites.

The report predicted fine dining will become more exclusive and expensive to customers following the closure of several high-profile venues last year.

Simon Chaplin, senior director of pubs, restaurants and franchise at Christie & Co, said: “2024 proved to be a tipping point for many in the restaurant sector, as the well-publicised pressures mounted and support in most forms came to an end.

“Those who are still here in 2025 are now in a prime position to take advantage of the continued appetite to spend on hospitality, which increased last year, as opposed to cooking at home as supermarket spend decreased.

“To date this has been focused on the fast-growing QSR market but will filter into casual dining brands as the year progresses, who will expand carefully with great property deals available.

“Unfortunately, some high-end venues have already disappeared, but this allows those who remain to become even more exclusive, ‘occasion’ restaurants, for the benefit of both customer and restaurateurs.”

Read more: Could the return of discounting spell trouble for casual dining?

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