Malta’s restaurant industry continues to navigate a complex mix of rising costs, shifting consumer behaviour, and cautious optimism for the months ahead, according to a new survey conducted by the Association of Catering Establishments (ACE).
The study, carried out in September 2025 through telephone and email interviews, gathered responses from 250 industry participants representing 405 catering establishments across the islands.
Consumer spending
The respondents were asked to report the average spend per customer, including VAT, at their establishments, calculated by dividing weekly sales by the total number of covers. Most establishments indicated an average spend of €15–€29 per head (31.9 per cent), though this represented a decline from 46.4 per cent in July–December 2024.
At the same time, there was a notable shift toward higher spending brackets: the proportion of customers spending €30–€49 rose from 14.3 per cent to 19.5 per cent, those spending €50–€74 increased from 3.8 per cent to 15.3 per cent, and customers spending €75 or more doubled from 2.4 per cent to 4.8 per cent.
Conversely, lower spending of €1–€14 per head declined from 33.1 per cent to 28.5 per cent.
Casual dining dominates the scene
When asked about the type of catering establishments they operate, casual diners emerged as the most common category, representing 44.5 per cent of all venues.
This was followed by cafeterias or snack bars (18.6 per cent), fine dining restaurants (12.9 per cent), takeaway outlets (10.5 per cent), casual upmarket venues (8.9 per cent), and staff canteens or food trucks (4.6 per cent).
Mediterranean restaurants were the most popular cuisine people voted for, at 41 per cent, followed by pizza or pasta (20.7 per cent) and café or bar (19.6 per cent).
In terms of locality of the catering establishments, Valletta was mentioned as the most popular at 11.5 per cent, followed by Mellieha (9.3 per cent) and St. Julian’s (8.6 per cent).
The results underline how Malta’s dining landscape remains rooted in accessibility and familiarity, even as operators face tighter margins.
Lower profitability
The survey also reveals a slight worsening in profitability across the sector.
The share of respondents reporting profit declines grew, with those experiencing drops of more than 25 per cent increasing from 1.1 per cent to 4.3 per cent, and smaller decreases of 1 per cent –5 per cent rising from 15.9 per cent to 19.9 per cent.
At the same time, the proportion of businesses maintaining stable profits fell from 33 per cent to 28.1 per cent.
On a more positive note, a number of establishments still reported profit gains, though these were generally modest and slightly fewer than before.
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