France's Restaurant Industry Faces Crisis as Traditional Dining Declines
France's traditional restaurant sector is undergoing a severe crisis with about 25 establishments closing daily, according to the Union des Métiers et des Industries de l'Hôtellerie (UMIH). The association has called on the government to regulate restaurant openings by local population and to license only professionals skilled in cooking and accounting.
Only haute cuisine for the super-rich and fast-food chains like McDonald's are currently thriving, while many traditional restaurants struggle to survive. The longstanding French culture of long lunches has diminished, particularly after the Covid-19 pandemic. Fewer than two-thirds of middle-class workers have returned to full-time office work, with many opting for hybrid schedules that include working from home part-time.
Additional pressures weigh on restaurants, including tax and policy factors such as the VAT rate discrepancy between 5.5% for takeaways and 10% for dine-in. Luncheon vouchers, which can be spent in supermarkets, further reduce lunchtime dining demand. The rise of delivery platforms like Deliveroo and Uber Eats, the proliferation of dark kitchens, and urban measures such as driving and parking restrictions have also eroded demand for traditional dine-in experiences.
Younger generations, including Gen Z and millennials, typically eat and drink less and spend less time dining out, favoring home meals instead. A case in point is Paris bar-restaurant owner Alex Diril who ceased serving food in 2024 due to rising costs and converted his business into a bar-tobacco shop.
Although there was Covid-era financial support through direct grants to restaurants, the post-lockdown boom in dining out was not sustained. The longstanding 35-hour workweek law since 1998 limits opening hours, and the post-pandemic environment has made hiring for evening and weekend shifts particularly challenging.
Together, these factors indicate a challenging landscape for France's traditional restaurant industry moving forward.
