Health trends, experiential dining reshapes Britain’s foodservice industry

British foodservice industry is valued at £71b.

Nearly half of British adults are now following specific diets, prompting 23% to switch restaurants for healthier options and pushing operators to rethink menus as the £71b foodservice market shifts from price-led to experience-driven growth, according to Circana.

Functional food and beverages, those supporting energy, immunity, and weight management, are among the fastest-growing segments of demand, influencing both menu design and venue choice.

Whilst GLP-1 adoption remains limited in Britain due to regulation, Circana revealed that momentum is building – awareness of GLP-1 medications has risen from 69% in May 2025 to 75% in January 2026.

In a separate report by YouGov, more than one in two British consumers who are using weight loss drugs are eating less fast food, a report by YouGov revealed.

The effects of GLP-1 have the most impact on snacking, with 64% of users finding themselves snacking less. 39% are also drinking less alcohol, whilst 33% are drinking less fizzy drinks. Meanwhile, 14% have said they also started drinking less coffee.

Nearly two in five said they are eating more vegetables, whilst 23% have started to consume more vitamins. 21% said they eat more fish and seafood, whilst 13% have said they increased taking supplements.

As consumption changes, Circana said restaurants are starting to adapt with portion-controlled, protein-forward menus and lower-sugar offerings.

“Price, loyalty and function are no longer decisive factors for British consumers, who are increasingly motivated by the eating/drinking out experience. They are seeking variety, healthier options, and the excitement of discovering new places and formats. This is where growth is being unlocked,” Edurne Uranga, VP Foodservice Europe at Circana, said.

While Europeans visit foodservice outlets less often than Americans, the role of those foodservice outlets in European household spending is often greater. In Spain, foodservice outlets account for 9.9% of total spend, followed by Great Britain (7.1%), Germany (6.8%) and Italy (5.9%), compared to 5.1% in the U.S., highlighting their continued importance in the European consumer wallet.

Despite economic headwinds, demand for foodservice remains resilient across British consumers who made 127 visits per capita in 2025, down -1.4%, equating to 8.8bn visits to British restaurants.

“Commercial restaurants now account for 77% of visits in Europe and 85% in Great Britain. At the same time, retail foodservice continues to gain traction in Europe, now representing 6% of visits (+3.5%), while in Great Britain it accounts for a more established 10% share (-4.0%), highlighting a more mature market despite a year-on-year dip and further blurring the lines between retail and hospitality,” Uranga said.

Circana predicted growth in restaurant revenue in 2026 of +3% across Europe and 4% in Great Britain, signalling steady but increasingly competitive expansion.

“As foodservice continues to evolve, restaurants and brands must rethink how they deliver value in a much broader sense so that every pound spent feels worth it for consumers,” adds Uranga. “At the same time, the sector should look at how revamping menus will help tap into new consumption patterns in a way that feels locally relevant for the consumption occasion and channel. Those who can strike that balance will be best positioned to win in the next phase of foodservice growth,” Uranga said.