Malta’s restaurants might look thriving from the outside — full terraces, long waiting lists, and a dining scene that never seems to slow down. But the latest industry survey by the Association of Catering Establishments reveals a far more uncomfortable truth: many operators are working harder than ever while earning less.According to the survey, overall revenue across the sector fell by about 1% in the first half of 2025, which on its own might sound manageable. But profits dropped 2.4%, meaning margins are tightening faster than income. Operators are turning over roughly the same revenue as before, but what’s left after costs keeps shrinking.The critical point, however, is that this pressure doesn’t affect all restaurant types equally.Fine dining, for example, remains the most resilient performer. In previous periods, it was the only segment consistently reporting revenue growth, and while pressure is mounting for everyone, premium restaurants still show stronger customer spend and more willingness to invest.On the other end of the scale, kiosks, food trucks, and takeaway operators are being hit the hardest. These businesses rely heavily on volume and tight pricing, and when labour costs, ingredient prices, packaging, power bills, and compliance go up, they simply have nowhere to hide. In fact, kiosks and food trucks showed the largest declines in both revenue and profit, confirming that the “work harder for less” trend is most aggressive in the lower-priced segments.Casual diners, which make up the bulk of Malta’s catering landscape, sit somewhere in the middle — not collapsing, but clearly under pressure. They reported modest revenue dips but sharper profit declines, suggesting their cost structures are absorbing shocks they can’t easily pass on to customers.And then comes the perception problem: locals believe restaurants are getting too expensive, operators insist they’ve already squeezed margins to breaking point.So while customers think restaurants are raising prices, the data shows the opposite: many are holding back on increases to avoid losing diners, but that restraint is eroding their profits. In fact, average spend per head actually fell, dropping from €25.89 to €22.74.The survey also confirms another tension the industry has been vocal about: food delivery platforms. While 44.4% of restaurants don’t use Bolt or Wolt at all, those who do face commission rates of 23–26% — levels many describe as unsustainable. This mirrors what restaurateurs told us back in May, when they called delivery apps a “necessary evil”: good for visibility, terrible for margins, and in some cases causing operators to lose money on every order once commissions and packaging were factored in. The survey shows that frustration hasn’t eased — if anything, rising costs have made dependency on couriers even harder to justify.Despite this, 60.9% of operators still invested in their business in the last 12 months but investment in new ventures is far weaker, and the future outlook, though slightly more optimistic than late 2024, still reflects caution.The big picture? Malta’s catering sector remains culturally vibrant and commercially active — but financially fragile. The problem isn’t that restaurants aren’t busy; it’s that the economics no longer add up, especially for lower-priced segments that can’t charge more without losing customers.•