British Foodservice Spend Hits £71bn as Experience-Led Demand Reshapes the Industry

With 45% of British adults now following a specific diet (rising to 60% among Gen Z and younger millennials), a broader shift towards health and purpose-driven consumption is also reshaping menus and occasions according to the latest insights from Circana.

Despite the menu changes, one in four (23%) British consumers reports that they are switching dining venues due to a lack of suitable options for the growing preference for high-protein and low-calorie diets.

Functional food and beverages – those supporting energy, immunity, and weight management – are among the fastest-growing segments of demand, influencing both menu design and venue choice.

While GLP-1 adoption remains limited in Britain due to regulation, Circana revealed that momentum is building – awareness of GLP-1 medications has risen from 69% in May 2025 to 75% in January 2026.

Restaurants are starting to adapt with portion controlled, protein-forward menus and lower-sugar offerings. However, there is potential for more innovation as social media accelerates awareness and behaviour change, expanding them to more and more users.

Presenting at the Alimentaria international trade show, Circana’s Edurne Uranga, VP Foodservice Europe, said: “Price, loyalty and function are no longer decisive factors for British consumers, who are increasingly motivated by the eating/drinking out experience. They are seeking variety, healthier options, and the excitement of discovering new places and formats. This is where growth is being unlocked.”

While Europeans visit foodservice outlets less often than Americans, the role of those foodservice outlets in European household spending is often greater. In Spain, foodservice outlets account for 9.9% of total spend, followed by Great Britain (7.1%), Germany (6.8%) and Italy (5.9%), compared to 5.1% in the U.S., highlighting their continued importance in the European consumer wallet.

Despite economic headwinds, demand for foodservice remains resilient across British consumers who made 127 visits per capita in 2025, down -1.4%, equating to 8.8bn visits to British restaurants. The British foodservice industry is now valued at £71bn – up +3.6% on 2024 figures.

Behind stable topline demand in the foodservice category, the sector is undergoing significant structural change, shaped by demographic shifts, post-pandemic behaviours, economic pressures and ongoing innovation.

“Commercial restaurants now account for 77% of visits in Europe and 85% in Great Britain. At the same time, retail foodservice continues to gain traction in Europe, now representing 6% of visits (+3.5%), while in Great Britain it accounts for a more established 10% share (-4.0%), highlighting a more mature market despite a year-on-year dip and further blurring the lines between retail and hospitality.”

Circana predicted growth in restaurant revenue in 2026 of +3% across Europe and 4% in Great Britain, signalling steady but increasingly competitive expansion.

“As foodservice continues to evolve, restaurants and brands must rethink how they deliver value in a much broader sense so that every Pound spent feels worth it for consumers,” adds Uranga. “At the same time, the sector should look at how revamping menus will help tap into new consumption patterns in a way that feels locally relevant for the consumption occasion and channel. Those who can strike that balance will be best positioned to win in the next phase of foodservice growth.” Uranga added.