Russian dining sector faces wave of closures as consumer spending stalls

Russian restaurants are closing at the fastest pace in four years as high interest rates and inflation stall consumption. Even Moscow is feeling the pinch.

Restaurants and cafes across Russia RURU are closing at the fastest pace recorded since the start of the war in Ukraine UAUA in 2022, as stalled consumer spending signals a major slowdown in the national economy. This ongoing wave of closures, visible nationwide from Moscow to Vladivostok, is weakening retail and hospitality activity and contributing to broader downward pressure on national growth and credit conditions. The immediate deterioration in domestic demand for the $2.8 trillion economy is reflected in the largest fall in catering outlets since 2021.
Data from Sberbank and the Central Bank of Russia reveal that restaurant spending has hit a three-year low, while real consumer spending growth reached zero in February. These indicators, supported by analysis from Autostat, coincide with recent central bank rate adjustments that have further tightened the economic environment. According to Olga Belenkaya of FG Finam, these factors are collectively weighing on the country's financial outlook and affecting credit conditions for major Russian banks.
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