After several years of severe restrictions caused by the COVID-19 pandemic, restaurants and bars across Europe have started to return to full operation. However, this comeback is far from a return to previous conditions – rather, it is a transition to a new reality where sanitary safety, digital technology and flexible business models play a key role. Shifting consumer habits, the economic impact of lockdowns and the need to adapt quickly have changed the face of the restaurant industry. In this article, we take an in-depth look at exactly how the rules of the game have changed for caterers, what entrepreneurs have done to survive, and what the future of the European restaurant scene might look like.

Gradual lifting of restrictions

• In 2020-2021, EU countries opened first terraces and summer areas and then indoor facilities. Requirements for COVID passports, vaccinations or tests were introduced .
• According to Circana, although spending has returned to pre-pandemic €308 billion by May 2023, attendance is still 11% lower – Europeans are still cautious, especially in indoor venues.

Health and safety and digitalization

• QR menus, contactless ordering and payment were introduced – digital was the new normal.
• Restaurants actively used sanitization, masks, distance – all of which are long lasting, improving hygiene.

Flexibility of business models

• Pop-ups, home cooking kits, click-&-collect and delivery were quickly activated: these became an important source of revenue.
• In Spain and Italy, where the market depends on tourism, the drop in 2020 was catastrophic, but startups with delivery and online services helped to smooth the blow.

Digital and techno-innovation

• Level of digitalization in Germany by 2021: 53% online booking, 46% digital POS system, 33% digital menu, 19% online ordering system.
• Foodtech platforms such as Metro’s Dish and Delivery Hero have received investments of up to €2.3 billion in the EU, dramatically changing the restaurant ecosystem.
• Contactless-format speeds up service and reduces cashier networks, but worsens loyalty – QR menus are sometimes perceived as inconvenient

Economic context and support

• In 2020, the revenue of HoReCa in the EU fell by 80-90%, many establishments are on the verge of closure.
• Support tools: EU Recovery Plan (Next Generation EU) with €1.8 trillion, national grants, tax incentives, in Italy and Romania – funds up to €750 million for HoReCa.
• The aim is to cover operating costs, salaries, updating safety standards.

Return of visitors

• Visitor spending in the EU has recovered to 100% of pre-pandemic levels (€308bn), but footfall is holding at 89% – visitors are coming in less often but spending more.
• In the UK casual dining has grown: +1.7% of new establishments in the first half of 2024 . In Scotland, however, the number of outlets is still 11.9% below the 2020 level.

Architecture and design

• Distances have been increased, partitions have been installed and verandas have been extended. A number of cities have closed streets to pedestrian areas and street-.
• This approach increases visitor comfort and confidence and speaks to the bet on safety and open-air.

The future: flexibility and sustainability

• Joint position of industry associations (FoodDrinkEurope, HOTREC) – continued support, VAT reduction, subsidies for long-term sustainability.
• Infrastructure: digitalization, staff training for transforums, diversification of revenues (delivery, kits, events) – this is now part of the business doctrine.

European restaurants and bars have gone through a major transformation after COVID restrictions. The new “norm” is digital, flexible and hygiene-conscious, while business sustainability still requires government support and constant adaptation.