After years of closures and uncertainty, the UK’s high streets are showing strong signs of recovery and food and drink is leading the charge.
New analysis from Funding Circle, the UK’s leading SME finance platform, reveals how cafés, restaurants, pubs, and food-led independents are driving a new era of high street vibrancy.
Once considered under threat from the rise of e-commerce, the high street is reinventing itself as a hub for experience, community, and lifestyle. And it’s the food and drink sector supported by consumer demand for dining, leisure, and culture that’s proving the most resilient and fastest-growing.
Consumer appetite: Eating and drinking out surges in 2025
While the UK economy still has a long way to go when it comes to recovery, there are signs that consumers are spending more and differently in 2025. Deloitte’s consumer confidence tracker shows that while everyday essential spending fell by 4.6% points in Q2, discretionary spending rebounded, with food and drink showing the strongest growth:
- Eating out up +9.3pp
- Drinking in pubs & bars up +9.2pp
- Eating out & restaurants overall spending up +2.8%
This surge reflects a shift towards experience-led spending, particularly among Gen Z and Millennials, who continue to prioritise restaurants, pubs, and travel over retail purchases.
The high streets where food & drink is thriving
City centres may occupy just 0.1% of the UK’s land, but they account for a 9.1% of all face-to-face consumer spending. High streets with strong visitor appeal, younger demographics, or high disposable incomes are thriving thanks to a diverse food and drink offering.
- London – the strongest all-round recovery, with a thriving multicultural dining scene and premium hospitality experiences.
- Manchester – over 25% of high street spend now goes to food & drink, boosted by Gen Z-led indie cafés, bars, and street food.
- York – tourism-driven spending sees visitors outspend locals (40% of all spending), fuelling restaurants and independent food outlets.
- Edinburgh – food and cultural mix keeps vacancy low (9.3%), with international cuisines and independent pubs drawing crowds.
- Brighton – vegan cafés, craft beer bars, and alternative food concepts thrive in a diverse, young-skewing markets.
Why food & drink is the high street’s most resilient sector
From multicultural cuisines in London to independent coffee shops in Sheffield, food and drink have proven to be the anchor for high street revival. Key reasons include:
- Frequency of spend – regular visits to cafés, restaurants, and pubs ensure consistent footfall.
- Tourism impact – cities like York and Edinburgh benefit from strong visitor spending, especially on food-led experiences.
- Gen Z & Millennial demand – younger consumers are driving demand for wellness-focused, ethical, and experimental dining.
What makes a food-led high street work in 2025?
The data shows that thriving high streets share three key ingredients:
- Diversity of offer – from premium restaurants to affordable street food, variety drives broad appeal.
- Community-first independents – local coffee roasters, bakeries, and breweries connect with residents.
- Tourism and culture tie-ins – cafés, pubs, and eateries thrive in cities with strong cultural or visitor economies.
From boutique bakeries in York to indie coffee shops in Manchester, food and drink is breathing new life into UK high streets. Cities that continue to invest in hospitality, culture, and community-led businesses are set to thrive in 2025 and beyond.