Greece’s food service industry is facing losses that could approach 1 billion euros in just two years, as weaker consumer spending coincides with the sector’s most critical trading period of the year.
The market is experiencing a summer in which stronger tourist flows are not translating into a corresponding increase in consumption, while elevated operating costs are adding further pressure on businesses. After a strong post-pandemic recovery, 2025 marked the first year of meaningful decline for the sector. According to data from the Hellenic Statistical Authority (ELSTAT), food service turnover fell 3.4% to 10.73 billion euros in 2025 from 11.3 billion euros in 2024. The decline represents losses of about 570 million euros and signals a shift from a period of robust growth to a slower operating environment.
Early indications for 2026 offer little reassurance. Sector turnover fell 1.9% in nominal terms during the first quarter, while industry estimates point to an annual decline of between 5% and 6%. Under such a scenario, revenue losses could reach 540-640 million euros, while the cumulative decline could exceed 1 billion euros.
The slowdown is particularly notable given the sector’s performance in previous years. Between 2019 and 2024, turnover nearly doubled, rising from around 6.5 billion euros to 11.3 billion euros, supported by the tourism recovery and the rebound in consumer spending following the pandemic. The current correction is interrupting that growth trajectory and raising questions about the market’s new equilibrium.
Tourism growth fails to lift spending
Despite increased tourist arrivals and higher accommodation occupancy rates, activity in the food service market remains subdued, according to George Kavvathas, president of the General Confederation of Greek Small Businesses (GSEVEE) and the Panhellenic Federation of Restaurants and Related Professions.
Speaking to “Naftemporiki”, Kavvathas said businesses in major tourist destinations such as Crete and Rhodes are reporting weaker-than-expected spending during the peak season.
“The market in Heraklion is completely dead,” he said, describing a situation that, in his view, is not confined to a single region.
The key issue is no longer visitor arrivals but spending per visitor. Consumers are becoming more cautious, reducing the frequency of dining out and opting for lower-cost food service options. In many cases, the average bill has fallen noticeably, with reports of customers limiting purchases to essentials.
“One Coca-Cola shared among four people. These practices are now appearing in the food service sector,” Kavvathas said.
He attributed the trend to declining disposable incomes and a shift in spending towards supermarkets and ready-made meals. According to industry estimates, supermarkets and prepared foods now account for nearly 30% of consumption in some categories, directly affecting restaurant revenues even during periods of strong tourism demand.
The expansion of short-term rental accommodation has also altered consumption patterns. Staying in Airbnb-style properties allows many visitors to prepare meals themselves, reducing the frequency of restaurant visits.
“From the outset I believed Airbnb would cost us a lunch or a dinner, and that assessment is being confirmed,” Kavvathas said, adding that the trend now appears structural rather than cyclical.
He noted that the nominal decline in turnover understates the pressure facing the industry. Food service prices have risen by a cumulative 15% over the past two years, implying that the real decline in consumption volumes is significantly larger than the recorded drop in revenues.
In practice, many businesses are having to cope with fewer customers or smaller orders per transaction, while operating costs continue to rise.
Industry representatives estimate operating costs have increased by more than 40% over the past two years, driven by higher energy prices, raw material costs, rents and wages, squeezing profit margins across the sector.
Even food delivery services, which provided an important source of support in recent years, are becoming less effective as platform commissions can reach as much as 32% of the final order value.
The strain is also evident in overdue liabilities. Around 17% of food service businesses have outstanding debts to social security funds, compared with roughly 8% across the broader economy.
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