Industry research
Restaurant chains
Scope
Europe
Companies
191
Key takeaways
What is the scope of this industry report?
The European restaurant chain market comprises businesses that own and/or operate (franchise) multiple food service establishments. As chains vary in terms of pricing, quality of food offering and preparation, and level of service, we segmented the market into (i) fast food, (ii) fast casual, (iii) casual dining and (iv) fine dining.
What does the Restaurant chains market landscape look like in Europe?
The European food service market remains fragmented due to low entry barriers and the wide range of cuisines offered. Consolidation has been low in recent years due to heightened interest rates, rising food prices, declining consumer disposable income and changing consumer behaviour with players favouring organic growth (interview by Gain.pro). At the same time, consolidation is expected to increase soon as standalone establishments still account for the absolute majority in all European food service markets. These single restaurants often lack the financial resources to transition to sustainable practices (e.g. plant-based food alternatives, local sourcing, building energy efficiency), thereby missing the opportunity to tap into the growing demand for sustainable restaurants. Moreover, they are less able to build a strong online presence and not sizeable enough to offset the commissions charged by third-party delivery companies (interview by Gain.pro).
What is the level of investor activity in the European Restaurant chains industry?
The restaurant sector traditionally attracts significant interest from financial buyers, with >50% of identified assets being sponsor-backed (April 2025). Investors predominantly pay attention to strong brand awareness, scalability potential and the opportunities to leverage technology in daily operations, when looking for potential targets in the industry. Other attractive factors in this market include ample opportunities to consolidate and growing demand for sustainable concepts. At the same time, the declining discretionary spending among European consumers and volatile operational costs, notably due to supply chain uncertainties and workforce shortages, act as deterrents for investors.
What are the key ESG considerations in the European Restaurant chains industry?
ESG issues predominantly revolve around environmental and social issues. The total food-system emissions accounted for ~30% of global greenhouse gas (GHG) emissions, of which ~8-10% can be attributed to food waste. To mitigate these issues, restaurants introduce various measures to reduce their environmental impact, such as using multi-temperature trucks to optimise logistics, offering biodegradable single-use packaging and cutlery, reducing the amount of packaging and offering plant-based food alternatives. From a social perspective, workforce shortages and working conditions are top of mind. Players ensure that salary increases are put in place more regularly, while also offering retention bonuses and clearer career paths.
Company benchmarking
Market growth
Deloitte (October 2024) valued the European food service market at ~€550bn in 2023 and estimated it to amount to ~€625bn by 2028 with a ~2.6% CAGR during that period
The global fast casual restaurant market was valued at ~$164bn in 2024 and is projected to grow at a ~16.1% CAGR in 2024-2029, amounting to ~$346bn by 2029 (Technavio, March 2025)
Positive drivers
Identified chains are well-positioned to gain market share from standalone outlets through (i) higher levels of professionalisation and operational efficiency, (ii) greater capacity to attract growth financing and (iii) stronger ability to build an online marketing presence (interviews by Gain.pro)
Channel digitalisation allows restaurants to implement loyalty programmes, including subscriptions and memberships. Combined with data analytics, this will continue to drive restaurant traffic, as customers interacting with restaurant apps are four times more likely to re-visit the restaurant (interview by Gain.pro)
Restaurants that invest in sustainable practices are projected to have higher revenue growth and lower costs in the long run given the higher willingness to pay from customers and resource optimisation initiatives (Yara, February 2023; ESG News, October 2024)
Negative drivers
Rising inflation taking its toll in the form of pressure on sales, as consumers reduce discretionary spending, and bottom-line margins, with increasing personnel, raw materials and utility costs (interview by Gain.pro)
Lifestyle changes (e.g. remote working) and evolving consumer preferences (e.g. convenience, affordability) puts pressure on smaller players, which are disproportionately affected by the commission fees from delivery partners (roamler, October 2024; interview by Gain.pro)
Structural shortages of hospitality workers in Europe continue to affect operations, particularly during high season in Southern Europe. In turn, this translates into higher personnel expenses and thinner margins (Schengen news, July 2024; NL TIMES, January 2024)
Fill out the form to request your copy of the Restaurant chains industry report
With the full report, you’ll gain access to:
Detailed assessments of the market outlook
Insights from c-suite industry executives
A clear overview of all active investors in the industry
An in-depth look into 191 private companies, incl. financials, ownership details and more.
A view on all 462 deals in the industry
ESG assessments with highlighted ESG outperformers
Discover hundreds of niche industry reports on Gain
Deep dive into additional industries to understand their market outlook, positive and negative drivers, and more!
