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Russia's Restaurant Traffic, Revenue Hit 25-Year Lows – Industry Group

Moskva News Agency

Restaurant traffic and revenue in Russia have fallen to their lowest levels in 25 years since the start of 2026, an industry group said, as consumers cut back on spending and costs rise.

Footfall at many restaurant chains has dropped 10-15% year-on-year, while some operators have reported declines of as much as 30-40%, Alexei Nebolsin, vice president of the Federation of Restaurateurs and Hoteliers, told the Kommersant business daily on Thursday.

The slump highlights mounting pressure on household spending in Russia, with consumers pulling back on dining out despite official data showing rising incomes, squeezing a sector already grappling with higher taxes and input costs.

In Moscow, the number of purchases at restaurants and bars fell 12% year-on-year, while St. Petersburg saw an 8% decline, according to data from fiscal platform OFD cited by the newspaper.

Operators across segments say the downturn has been broad-based.

Traffic dropped 15-20% at fast-casual chain Teremok, founder Mikhail Goncharov told Kommersant.

At Rakovaya, the number of transactions fell 10-12% from a year earlier, marking the worst performance in the network’s 10-year history, its founder Yevgeny Nichipuruk said.

Restaurant owners attribute the decline primarily to weakening real incomes, which they say began falling last summer.

State statistics agency Rosstat says real disposable incomes rose 7.4% in 2025, while real wages increased 4.4%.

However, operators say consumers have “tightened” spending across all price segments, from premium dining to fast food.

Additional pressure has come from rising costs after the New Year, including higher taxes on restaurants and their suppliers.

Alcohol prices have increased due to higher excise duties, while food costs have risen as suppliers shifted to value-added tax, Nebolsin said.

Even fast food — typically more resilient — has seen customers reduce visit frequency and order sizes, said Mikhail Zhiganov, a director in corporate finance at consultancy Strategy Partners.

The downturn has triggered a wave of closures. The number of liquidations in the food service sector rose 29% year-on-year in January-February to 7,300 companies, according to Kontur.Focus data cited by Kommersant.

Interest in opening new venues has also fallen sharply. Franchise applications dropped 47.5% in January-February, while overall demand for restaurant franchises fell 38% in January-March. Coffee shop franchises saw a 51% decline in demand, while fast food fell 26%.

In Moscow, several chains have shuttered outlets since late 2025, including about 20 locations of Shokoladnitsa, 25 Rostic’s outlets, eight Yakitoriya restaurants and two Menza locations.

Others have exited the market entirely, including Khleb Nasushchny, Fornetto, the bar chain Dorogaya, Ya Perezvonyu and the Valenok and The Toy restaurants.

According to mapping service 2GIS, the number of restaurants in Russia’s million-plus cities had fallen 5% year-on-year by March, while cafés declined 6% and bars 11%.

Read this story in Russian at The Moscow Times' Russian service.

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