Cost of eating out in Cyprus rises 26 per cent in three years

Nicosia, Cyprus. The average cost of a meal out in Cyprus has risen by 26 per cent over the past three years, with a €100 meal in 2023 now costing €126 on average, according to data released on Friday.

Energy and alcohol costs

Pasika secretary general Fanos Leventis attributed the increase to rising energy and alcohol prices.

“The fact that there are increases is indisputable. The fact that the increases are justified is also indisputable,” he said.

Leventis said raw material prices had increased following the pandemic, while geopolitical unrest had contributed to sharp rises in energy costs. He added that the zero VAT measure on certain products did not appear to have helped businesses.

Service inflation

He said substantial increases in the price of alcoholic beverages had significantly raised diners’ per capita spending when eating out.

Asked why inflation in services remained higher despite normalising across the rest of the economy, Leventis said high energy costs were a contributing factor.

“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.

Pricing balance

Leventis acknowledged that some price increases may not be warranted, while noting that some businesses had also reduced prices or introduced offers.

He said business owners must balance viable pricing with the purchasing power of consumers.

“It’s a difficult equation, I would say, it’s a choice that not many have the luxury of managing in the right way,” he said.