News / Greece

Greek restaurants under pressure as tourists turn to supermarkets

Despite record arrivals, shifting visitor habits and rising costs are squeezing the hospitality sector, while grocery sales boom across the islands

For tourists in Greece's busiest hubs, a night at the taverna has become a more expensive consideration, many opting for the supermarket. Photo: Depositphotos

Staff writers
15 September 2025 2:27pm

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The UK tabloid Daily Express has reported that Greece’s restaurants “are feeling the pinch this European summer, despite record tourist numbers”. Tourism to Greece has been at its prime, with over six million international arrivals between January and May this year.

According to the Daily Express, many tourists are skipping dining out in favour of cooking in short-term rentals or buying groceries.

While figures from IBISWorld show growth of 24.6 per cent between 2020 and 2025 in Greece’s catering industry, rising operating costs have added pressure to already strained businesses. Supermarkets, especially on the islands and in Crete, are enjoying strong growth as tourists turn to ready-made meals and groceries as a cheaper alternative to restaurants.

Data from the market research company NielsenIQ shows that supermarket sales across Greece grew 7.8 per cent in value, reaching €10.44 billion (AUD 17.23 billion) in the year ending August 24. Food and beverage sales rose 7.5 per cent, while fresh produce and items sold by weight saw an 11.5 per cent increase. Growth was particularly strong in the islands, up 11.3 per cent, with Crete reporting a 9.7 per cent rise.