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 SME finance platform Funding Circle reveals how cafés, restaurants, pubs, and food-led independents are driving a new era of high street vibrancy.
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% in the second quarter of this year, discretionary spending rebounded, with food and drink showing the strongest growth. Eating out was up by 9.3%, while drinking in pubs and bars rose 9.2%.
The 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.
Cities that continue to invest in hospitality, culture, and community-led businesses are set to thrive in 2025 and beyond, says Funding Circle, which helps small businesses access fast, flexible finance to get off the ground or expand their operations.
