Eating out has become significantly more expensive for families in Cyprus, with restaurant and accommodation prices rising by 26% since 2023 and by 45.6% compared with 2020.
Based on the Harmonised Index of Consumer Prices for August, an outing that cost €100 in 2023 would cost around €126 today.
Put another way, services costing €100 today would have cost approximately €68.68 in 2020 and €79.37 in 2023.
Restaurant prices outpace other costs
The figures show that prices in the restaurants and accommodation services category have risen considerably faster than several major operating expenses facing hospitality businesses.
Food and beverage prices were 29% higher in August 2026 than in 2020, but had increased by only 4.7% since 2023.
Similarly, the category covering housing, water, electricity, natural gas and other fuels recorded a 36% increase compared with 2020, but just 2.7% since 2023.
Despite those increases in business costs, the rise in restaurant and accommodation prices has been markedly higher.
Wages have not kept pace
The affordability gap is also evident when restaurant prices are compared with earnings.
According to the latest available Statistical Service figures, seasonally adjusted average monthly earnings in the first quarter of 2026 were 31.8% higher than in 2020 and 14.9% above 2023 levels.
Restaurant and accommodation prices, by comparison, have risen by 45.6% and 26% over the respective periods.
The figures suggest that eating out is becoming a more difficult and less frequent option for many Cypriot households.
Consumer complaints over charges
Cyprus Consumers Association president Marios Drousiotis confirmed that a substantial rise in restaurant prices has been observed.
The association was unable this year to conduct the survey it carried out in previous years, which gathered pricing data from around 200 restaurants.
Drousiotis said the main complaints received from consumers in relation to restaurants concern being charged for items they did not order or facing higher-than-expected charges.
PASIKA points to energy costs
Fanos Leventis, secretary-general of the Pancyprian Federation of Leisure Centre Owners (PASIKA), acknowledged that prices have risen but argued the increases largely reflect mounting costs for businesses.
"That there have been increases is indisputable. That the increases are justified is also indisputable," he said.
Leventis pointed to a continuous increase in raw material costs since the pandemic, as well as geopolitical developments that have contributed to rising prices and persistently high energy costs.
He also said the zero VAT measure introduced for certain products did not appear to have provided meaningful relief to hospitality businesses, as prices continued to rise.
Alcohol prices add to the bill
Leventis also highlighted what he described as a sharp increase in the price of alcoholic beverages.
Higher alcohol prices, he said, have noticeably increased average per-person spending at restaurants and other hospitality venues.
Asked why service-sector inflation remained elevated even as price pressures eased elsewhere in the economy, Leventis again pointed to energy as a decisive factor.
In the past, he said, restaurants did not necessarily include energy as a significant standalone component when calculating the cost of food and drink because it was considered relatively predictable.
Today, businesses that fail to factor energy into their pricing risk serious discrepancies between costs and revenue.
Some increases may not be justified
Leventis acknowledged that certain price increases might not be justified.
He also noted that amid the broader wave of higher prices, some businesses have introduced special offers and price reductions in an effort to attract customers.
Hospitality operators, he said, are attempting to strike a difficult balance between setting prices that allow their businesses to remain viable and recognising the reduced purchasing power of customers.
Consumers still have options, he added, because there remains a considerable range of prices across different establishments.
Restaurants struggle with profitability
Leventis described hospitality as a particularly vulnerable sector, noting that it is often among the first to suffer when economic conditions deteriorate, although it can also recover relatively quickly.
Asked about profit margins, he said a healthy hospitality business should aim for a net profit of around 10%.
According to Leventis, however, many businesses are currently failing to achieve that level.
A significant number of establishments continue to attract customers but are nevertheless struggling to maintain financial viability because of rising operating expenses.
Source: CNA
