It is home to the long lunch, the local bistrot and Michelin- star dining. But with less disposable income, many people in France are changing their eating habits to eke out their diminished spare cash.
In recent years, low-cost dining has exploded to meet this need. From affordable formules (set menus) to pop-up restaurants devised solely for customers on a tight budget.
However, this trend comes at a price, say industry experts.
Clémentine Charbonnier
Clémentine Charbonnier, director at Paris-based food consultancy Gira, said: “This trend is in response to inflation and the decline in purchasing power, but it raises concerns.
“Ultra-low prices distort our perception of value, making it harder to justify normal or higher prices on the market.”
In other words, if customers get used to these lower prices, they might refuse to pay more elsewhere and end up driving restaurants out of business. And simply slashing prices to keep up with the competition is risky.
“Super low prices might be suspicious. Diners know a €2 or €5 meal cannot offer the same quality as a €15 one.”
How cut-price pricing works Balancing cut-price menus with overheads such as staff wages and the cost of fresh ingredients can be difficult but restaurants have key strategies, says Ms Charbonnier.
One is to drastically reduce menu choice, often offering just one or two options for each course.
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“Fewer items equals lower inventory, production and labour costs,” she said.
Another is to cushion the hit in profits by pulling in more customers: “Low margins are, in theory, offset by higher volumes, but it doesn’t always work.”
Many restaurants also implement ‘psychological pricing’.
“Advertising meals for under €10, for example, taps into perceived value,” said Ms Charbonnier.
In other cases, the strategy is to encourage customers to buy added extras: “Offering high-margin products such as sides, desserts and drinks will increase the average spend.”
Whatever the method, cheap eats are proving a hit.
“Low-cost options let people still enjoy eating out despite inflation,” said Ms Charbonnier. Their online reach is also a factor: “These restaurants and offers have viral appeal and are highly shareable on social media.”
'Pop-up' restaurants
One such Paris-based restaurant, called 6.90, let diners enjoy a main course for just €6.90 and dessert for €2.90.
It opened in March to great fanfare.
In line with the typical low-cost strategy, it offered just two (homemade) main courses (sausage with mashed potato or vegetable lasagne) and one dessert (chocolate mousse).
It further cut costs by removing waiters – diners instead picked up their meal on a tray at the till and were expected to clear their tables. Its credo was ‘we are not so much low-cost as smart-cost’.
However, despite attracting lunchtime crowds and attention on social media, the restaurant was only ever conceived as a short-term ‘pop-up’.
By the end of June, it had closed. Its owners admitted it would only work financially if they opened in several other locations too.
Eating out still popular Eating out in France has undoubtedly become more expensive since the pandemic, and could be nearing its peak, says Ms Charbonnier.
“The average cost [of restaurant meals] has risen, especially between 2021 and 2023. We have reached a stage where some prices are already at their highest, which explains the attraction of low-cost offers.”
However, rising prices and the resultant ‘cheap eats’ alternative are squeezing mid-range eateries caught in the middle.
“The market is becoming polarised: on one side ultra- affordable offers, and on the other, premium experiences that must justify their price.”
Survival, she says, depends not just on offering a consistently good experience, but on being reactive too.
“There is no secret about it: restaurants that do their job well with a well mastered triptych of product, price and place will continue. We must remain agile.”
Despite the cost-of-living crisis, French people have not been deterred from eating out.
“The number of meals in commercial catering increased by almost 8% between 2019 and 2024,” said Ms Charbonnier. “The French enjoy eating out and restaurants are a source of pleasure.”*
However, diners have come to expect more than just a meal. “Especially since the pandemic, diners focus on the ‘experience’. They want ambiance, service and storytelling.”
While cheap eats look here to stay, she predicts several other increasing trends in France.
First, a return to traditional cuisine: “comforting, simple, value-driven dishes like bouillons” (broths).
Also, a greater integration of data and AI will help “personalisation, inventory management and predictive planning”.
And, finally, “immersive and thematic dining” will continue to grow – “experience-led concepts are booming”, she said.
*People in France spent €120 per month on average on eating out in 2024. People in the UK, by comparison, spent half this in 2023 (latest similar data available), according to the data company Statista.
