Struggles Mount as Around 25 French Restaurants Close Daily Amid Changing Market Dynamics
According to Franck Chaumès of the UMIH restaurant branch, around 25 French restaurants close every day as the sector faces multiple challenges. The UMIH has called on the government to impose limits on new restaurant openings based on local population and to restrict licenses to qualified professionals, but these measures have yet to be adopted.
While high-end haute cuisine establishments and fast-food chains like McDonald’s remain relatively insulated, traditional eateries are struggling significantly. Post-pandemic shifts such as the rise of home delivery and dark kitchens have altered consumer behavior, with many venues unable to raise prices sufficiently to offset increased costs.
Rising wholesale food prices, tax rules, and shifting consumer habits are squeezing profitability in casual dining. France’s 35-hour workweek and post-Covid labor shortages further affect opening hours and the ability to staff evenings and weekends. Tax and policy changes have introduced a 5.5% VAT on takeaway orders versus 10% for dine-in, along with meal vouchers becoming usable in supermarkets, all of which have negatively impacted lunchtime dining.
The proliferation of delivery platforms and urban restrictions, combined with changing work patterns, have eroded traditional dine-in business. Although there was a six-month post-lockdown boom, this faded into a sustained downturn. Anecdotal evidence, such as a Paris bar-tobacconist ceasing meal service in 2024, illustrates the ongoing closures and market exits among individual venues.
