This statistic displays the five managed restaurant brands showing the highest rate of decline in Great Britain, based on net closures between ********* and *********. Prezzo suffered the most with net closures of ** sites. Chimichanga and Strada have also experienced restaurant closures.

Shifting social trends have significantly influenced the Restaurants industry's performance over recent years. Consumers' busy lifestyles and high workloads have driven demand for restaurant meals, as well as takeaway and delivery services. Restaurants allow consumers to combine dining with leisure and avoid spending time on food preparation. Rising demand for food delivery platforms like Uber Eats, which enable time-poor consumers to purchase home-delivered, restaurant-quality food, has also supported industry revenue. Despite tight discretionary incomes and recent cost-of-living pressures, Australian consumers have continued to prioritise eating restaurant meals, as they view them as affordable indulgences. However, industry businesses are struggling with elevated operational costs, including high input, rent and energy expenses. Labour shortages have also plagued the industry, with restaurants facing significant retention gaps. These challenges, along with intense competitive pressures, have eroded the industry’s profitability, compelling some businesses to exit the industry. Nonetheless, the total number of enterprises in the industry has increased over the past five years as dynamic consumer preferences have created several niches for restaurants to cater to. Overall, industry revenue is expected to have soared at an annualised 8.2% over the five years through 2025-26 to $26.2 billion. This includes a moderate anticipated rise of 0.4% in 2025-26. Reeling from the economic challenges of the past five years, restaurants are set to diversify their revenue streams by expanding their service offerings to include merchandise and live events over the coming years. Restaurants are forecast to focus on improving operational efficiencies to limit costs and boost their profit margins. This includes adopting integrated technological advancements that will enhance the overall dining experience for customers. There will also be a focus on sustainability efforts as Australian consumers become more discerning about their environmental choices. Overall, industry revenue is projected to increase at an annualised 2.0% over the five years through 2030-31 to reach $28.9 billion.

In 2025, 10 restaurants in Great Britain and Ireland were awarded three Michelin stars, the highest recognition given to restaurants by the Michelin Guide. Meanwhile, the number of restaurants holding one or two stars that year totaled 181 and 29, respectively.

Food trucks have seen significant growth over the last five years, cementing their position as a standout in the broad food services sector. Notably, this expansion is largely due to evolving consumer tastes shifting in favor of unique, gourmet cuisine offered at prices lower than those in traditional sit-down restaurants. The industry has thrived, with cities like Portland, LA and Austin passing regulations and establishing designated areas for this new wave of culinary delights. The industry revenue stayed resilient despite higher inflationary pressures. Therefore, industry revenue is expected to reach $2.8 billion, with an annualized growth rate of 13.2% over the five years to 2025. However, in 2025 alone, industry revenue is expected to marginally decline 0.2% due to higher tariffs that force most food truck vendors to raise their prices. Nevertheless, not all food truck industry vendors celebrate this success. City regulations, escalating competition, and minuscule profit margins are tripping up some. Food truck-specific laws are not uniform; they differ by city. These laws determine the working hours and conditions for the food trucks, often including specified distances from traditional brick-and-mortar establishments. Indeed, these restaurants often see the food trucks as direct competition and have rallied against the industry. Food trucks will still face significant challenges over the next five years. The most prominent are regulatory roadblocks, stunting industry growth. Parking and other concerns legislation remains a work in progress in many towns as they scramble to accommodate the wave of change. Nonetheless, rising household incomes and the growing interest in convenient yet affordable gourmet cuisine will fuel the industry's expansion. The projected revenue growth over the five years to 2030 is a CAGR of 0.3%, reaching $2.9 billion.

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Franchise Market Size 2025-2029

The franchise market size is valued to increase by USD 501.6 billion, at a CAGR of 9.6% from 2024 to 2029. Rise in number of restaurants and hotels worldwide will drive the franchise market.

Market Insights

North America dominated the market and accounted for a 46% growth during the 2025-2029.
By Type - Business format franchise segment was valued at USD 154.80 billion in 2023
By Application - Hotels segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 171.55 billion 
Market Future Opportunities 2024: USD 501.60 billion
CAGR from 2024 to 2029 : 9.6%

Market Summary

The market continues to evolve globally, driven by the increasing number of restaurants and hotels worldwide. This expansion is fueled by innovation in in-store retailing and the growing demand for consistent brand experiences. Franchisees seek to optimize their supply chains to maintain quality and efficiency, while adhering to strict brand guidelines. For instance, a global fast-food chain may face challenges in ensuring uniformity across its franchised locations, from menu offerings to operational procedures. Implementing advanced technology solutions, such as digital menus and standardized training programs, can help maintain brand consistency and improve overall customer experience.
Moreover, franchises must navigate complex regulatory environments and comply with various industry standards. Adhering to these regulations can be time-consuming and costly, but failure to do so can result in reputational damage and potential legal issues. In conclusion, the market is characterized by its global reach, innovation, and the need for operational efficiency and brand consistency. Franchisees must navigate a complex landscape of supply chain optimization, regulatory compliance, and technological innovation to thrive in this competitive industry.

What will be the size of the Franchise Market during the forecast period?

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The market continues to evolve, with recent research indicating a significant increase in franchisors adopting technology to streamline operations and enhance customer experience. This growth is driven by the increasing popularity of franchising as a business model, offering benefits such as established brand identity, proven business systems, and reduced risk. Compliance is a critical area of focus for franchisors, with stringent regulations governing franchise agreements and operations. Franchisors must ensure adherence to legal frameworks and compliance standards to mitigate risks and maintain a strong brand reputation.
For instance, franchisors are increasingly investing in contract management systems to streamline the agreement process and ensure consistency across franchisees. Moreover, franchisors are leveraging data-driven decisions to optimize franchise relations, marketing campaigns, and sales growth. For example, franchisees can access real-time sales data to identify trends and adjust their strategies accordingly. This data-driven approach enables franchisors to provide better support services, foster stronger relationships, and drive operational improvements. In conclusion, the market's continuous evolution presents both opportunities and challenges for franchisors. By focusing on areas such as technology adoption, compliance, and data-driven decision-making, franchisors can stay competitive and drive growth in an increasingly dynamic business landscape.

Unpacking the Franchise Market Landscape

In the dynamic world of franchising, businesses seek to optimize their operations through strategic partnerships. Franchisees benefit from established brand guidelines, comprehensive training programs, and marketing support. According to industry data, franchises exhibit a 97% success rate compared to 15% for independent businesses. Initial franchise fees, a significant investment, are offset by renewal fees and contributions to advertising funds, ensuring consistent brand awareness and customer loyalty. Effective contract negotiation and profit sharing arrangements align business objectives. Franchisees also gain access to performance metrics, operational efficiency improvements, and franchisee support. Risk management, customer satisfaction, and brand consistency are enhanced through franchise networks and technology integration. With a well-structured business model, franchises penetrate markets more efficiently, achieving sales targets and ensuring legal compliance. Inventory management, financial reporting, and supply chain management further streamline operations, contributing to overall operational efficiency and profitability.

Key Market Drivers Fueling Growth

The global market is significantly driven by the increasing number of restaurants and hotels in operation worldwide.

Consumer sentiment, disposable income levels and drinking habits impact spending on drinking establishments, including pubs, bars, nightclubs and coffee shops. Europe is known for its well-established drinking culture, which varies from country to country. Beer and wine consumption are very popular on the continent, with many countries also major producers of these beverages. However, alcohol consumption per capita in Europe is on a downward trend, hindering demand for drinking establishments. Meanwhile, coffee shops benefit from resilient demand amid a thriving coffee culture on the continent. Industry revenue is expected to expand at a compound annual rate of 5.8% to €100.6 billion over the five years through 2025, including a 0.1% drop in 2025. The industry is driven by Europe’s deep-rooted culture of socialising, vibrant nightlife and evolving urban lifestyles. Climbing health consciousness, particularly among younger demographics, is shaping the industry’s performance, weakening per capita alcohol consumption levels across most European countries. Consumers are reducing their alcohol intake or completely cutting it off due to the health benefits of staying sober, presenting challenges to venues that rely on alcohol sales. This shift has forced many establishments to diversify their offerings, adding more non-alcoholic options and high-quality snacks. In the aftermath of the pandemic, the hurdle of surging inflation deterred spending on going out and drinking. Many consumers have since turned to beverages offered at supermarkets as off-trade alcohol prices are lower, hindering revenue over the three years through 2025. Intense competition from supermarkets and restaurants has pressured prices, hindering revenue and profit growth. This, paired with higher operational costs, has weighed on profitability. Industry revenue is forecast to swell at a compound annual rate of 3.7% to €120.4 billion over the five years through 2030. An improving European economy will bolster consumer sentiment and disposable incomes, fuelling spending on on-premise drinking. Premiumisation is set to be an emerging trend, with consumers willing to pay more for craft, high-quality beverages, as well as memorable experiences and entertainment. However, subdued levels of alcohol consumption per capita and escalating competition will limit revenue growth. To combat competition and keep up with changing consumer preferences, drinking establishment operators will have to broaden their offerings, dabbling in more varied non-alcoholic beverage options. Those that fail to do so will struggle in the increasingly competitive market.

In 2022/23, an average of 14 grams of Indian, Chinese and Thai food were consumed per person per week in the United Kingdom. This denoted a slight decrease from 2022/2023, and was less than half the amount recorded in 2019/20.