Restaurants shunned as cost of dining out bites hard

By the Editorial Team · Monday, September 21, 2026

Rising restaurant prices, up nearly 40% since before the pandemic, have led nearly two-thirds of consumers to dine out less frequently, with many attributing the decline directly to higher costs. In response, hospitality leaders are urging government tax relief as supermarkets expand premium ready meal options to capture consumers shifting toward home dining.

A growing number of consumers are choosing to dine out less frequently as the rising cost of restaurant meals continues to weigh heavily on budgets, according to recent survey findings. Nearly two-thirds of respondents reported eating out less often, with three-quarters attributing this decline to increased prices.

Data from the Office for National Statistics indicates that restaurant prices have climbed approximately 40 percent since before the COVID-19 pandemic. Moreover, the cost of dining out has been rising at a rate surpassing general inflation over the summer months, further pressuring consumers and the hospitality sector alike.

For many families, even visits to popular high street chains have become prohibitively expensive. At Pizza Express’s Covent Garden location, a meal for four—comprising four American hot pizzas, two glasses of shiraz, and two glasses of Coke—can total around £126 once a discretionary service charge of 12.5 percent is included. Notably, a single glass of Coke is priced at £4.45.

The expense escalates sharply at high-end and Michelin-starred establishments. Multi-course tasting menus at restaurants such as Core by Clare Smyth and Alain Ducasse at the Dorchester commonly range from £200 to £350 per person. Wine pairings typically add between £120 and £250, with premium options exceeding £300 each. At the Ledbury in Notting Hill, a three-Michelin-starred restaurant run by Brett Graham, dinner tasting menus cost £295 per person, with classic wine pairings also priced at £295. Combined with tips, a meal for two can exceed £1,300. More expensive offerings exist, including Sushi Kanesaka in Mayfair, where the omakase tasting menu is priced at £420 per person before a 15 percent service charge, and Ikoyi, which charges £395 per head for its tasting menu.

Restaurants are also contending with rising operational costs. The national living wage rose by 4.1 percent to £12.71 per hour in April. Additionally, the employer national insurance rate increased from 13.8 percent to 15 percent last year, accompanied by a reduction in the salary threshold triggering employer contributions from £9,100 to £5,000.

These economic pressures have prompted industry leaders to appeal to the government for relief measures. Over 800 hospitality businesses and notable chefs, including Heston Blumenthal, Angela Hartnett, and Tom Kerridge, recently urged the prime minister to reduce the value-added tax (VAT) on hospitality services from 20 percent to 10 percent to help sustain the sector.

In response to shifting consumer behavior, supermarkets have expanded their offerings of premium ready meals as alternatives to dining out. Waitrose, for example, has introduced an £18 meal deal featuring two mains and two sides from its premium No 1 range, drawing inspiration from Indian and Southeast Asian cuisines. Stephen Parkinson Knight, executive chef at Waitrose, observed that "the home has become a place where people can create their own version of the restaurant experience," reflecting a broader trend toward home dining amid rising costs.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.