Migrants’ Chaikhanas Are Replacing Restaurants: russia’s Gastroeconomy Is Deteriorating

The situation on the catering market in russia is worsening: due to falling attendance and declining margins, more and more restaurants are being forced to close. In November 2025, the number of establishments decreased by 3.1% year-on-year. Sushi bars (-7.5%) and pizzerias (- 6.4%) were the hardest hit, with cafes and classic restaurants also declining. Market profitability fell from 20-25 % to 10-12%.

The situation is complicated by rising costs of personnel, rent, and food, regional restrictions on alcohol sales, and the shift of some consumers to delivery and ready-made meals. The opening of new establishments has slowed down due to expensive loans – many entrepreneurs are not willing to risk launching projects at all.

The only segment that is formally growing is chaikhanas, whose number has increased more than 2.3 times. Experts explain this not by a recovery in the market, but rather by the low base effect, demand for cheaper formats, and social factors: the impact of migration from Central Asia and the formation of a new audience for this type of establishment in cities.

Due to falling real incomes, rising prices, and cautious consumer behavior, russians are turning away from more expensive restaurants, choosing cheaper food and simpler formats. Taken together, these factors point to a further deterioration of the situation in the catering sector in russia and a degradation of the market.