Supermarket turnovers in Cyprus are growing, while restaurants record losses

In Cyprus, a contrasting trend is becoming increasingly apparent in two sectors: supermarkets are showing growth, whereas restaurants and cafés are facing serious difficulties.

According to the Cyprus Supermarket Association, the sector’s turnover in 2024 reached €2.3 billion, 6% higher than the previous year. From January to July 2025, large stores over 500 square meters increased turnover by an additional 4% compared to the same period last year.

Economists note that the main reason for this growth is a change in consumer habits. More and more residents prefer to cook at home, buying groceries and essential goods in supermarkets instead of regularly visiting dining establishments.

At the same time, restaurant and café owners report declining revenue. During the summer months, losses reached up to 30% compared to last year. Slight recovery was observed only in August due to the tourist influx, but the overall situation remains difficult. Industry representatives claim that even reforms and new legislative initiatives cannot offset the combination of negative factors.

According to Eurostat, retail trade in Cyprus currently shows one of the highest growth rates in the European Union. In July, sales volume increased by 8.5%, while the EU average was 2.4%. Growth is particularly notable in specialized stores: food, beverages, and tobacco products recorded a 15.3% increase in sales.

At the same time, supermarkets themselves face several challenges. These include rising electricity costs, high rental rates, staff shortages, and increasing competition. In addition, customers increasingly choose own-brand and promotional products, which reduces business profitability.

Thus, Cyprus exhibits a dual situation: supermarkets are strengthening their positions and expanding turnover, while restaurants and cafés are experiencing a decline. Experts believe that food service operators will need to adapt to the new reality, revise pricing policies, and find new approaches to attract customers.