Eating out in Cyprus up 26% since 2023, industry data shows
A meal that cost €100 in 2023 now averages €126, according to data released on Friday, with energy and alcohol prices blamed for the rise.
Dining out in Cyprus has become significantly more expensive over the past three years, as data released on Friday show that a meal costing €100 in 2023 now averages €126 — a 26 per cent increase, as reported by Cyprus Mail.
Fanos Leventis, secretary general of the hospitality venues association (Pasika), attributed the rising costs to higher energy and alcohol prices. "The fact that there are increases is indisputable. The fact that the increases are justified is also indisputable," he said.
According to Leventis, raw material prices climbed after the pandemic, while geopolitical unrest drove sharp increases in energy costs. He added that the zero VAT measure on some products does not appear to have eased pressure on the sector.
He also pointed to significant increases in alcoholic beverages, which he said substantially raise per capita spending for diners. Asked why service inflation remains high while the rest of the economy normalises, Leventis said the very high cost of energy played a role.
"In the actions that a business took in the past, energy was not taken into account in the costing of food and beverages, because it was taken for granted. Today, however, if someone does not take it into account, they will have a very serious deviation," he said.
Leventis acknowledged that some price hikes may not be warranted, noting that price reductions and offers also exist. He said entrepreneurs must balance viable pricing against the public's purchasing power, and that a healthy food business needs a net profit margin of around 10 per cent. "At this time, several businesses are certainly not reaching that and a significant number of businesses, despite the fact that they have traffic, are struggling for sustainability," he said.
According to the harmonised index of consumer prices, prices in the catering and accommodation category in 2026 rose by 45.6 per cent compared with 2020, by 26 per cent compared with 2023 and by 13 per cent compared with last year. Beverage and food prices in August 2026 were up 29 per cent from 2020 but only 4.7 per cent from 2023, while the housing, water, electricity, natural gas and other fuels category rose by 36 per cent and 2.7 per cent respectively.
What it means for residents
The figures confirm what most households already feel at the till: a night out or a family lunch costs noticeably more than it did three years ago, and the gap is driven largely by energy and drink prices rather than by the food itself. For residents, this means budgeting more carefully and paying attention to where the increases actually sit on a bill.
- Check the drinks list. Alcohol has seen some of the steepest rises, so it is often the single biggest lever on the final bill.
- Look for offers. Venues are mixing increases with reductions and set offers, so comparing menus before booking can still save money.
- Expect pressure on local venues. With many businesses below a healthy margin, some neighbourhood spots may cut hours, change menus or close, affecting choice close to home.
This text is written from the source article and is not a translation of it.
