Greece’s restaurants are feeling the pinch this summer, even as foreign visitor numbers hit record highs. Tourism to Greece has been in itsprime, with 6.3 million international arrivals between January and May this year. But many tourists are skipping dining out in favor of cooking in short-term rentals or buying groceries.

Catering industry officials report a roughly 20% drop in consumption compared with last year, with some regions hit harder. Rising operating costs are adding pressure to already strained businesses. In contrast, supermarkets - especially on the islands and in Crete - are enjoying strong growth as tourists turn to ready-made meals and groceries as a cheaper alternative to restaurants. Data from the market research company NielsenIQ shows that supermarket sales across Greece grew 7.8% in value, reaching €10.44 billion in the year ending August 24. Food and beverage sales rose 7.5%, while fresh produce and items sold by weight saw an 11.5% increase. Growth was particularly strong in the islands, up 11.3%, with Crete reporting a 9.7% rise.

Yiannis Papadopoulos, President of the Naxos Mass Catering Association, told CNN Greece that this trend, already evident last summer, has intensified in 2025.

He said: "Visitor numbers rose after July 15, but tourists are staying for shorter periods and spending less on dining out, boosting supermarket sales, takeout, and delivery."

The crisis is even more prevalent among locals, who cannot afford to eat out as they are priced out by tourists.

Studies by the Union of Working Consumers in Greece show that one in two Greeks will not go on holiday in 2025. Eurostat has reported that nearly half of Greece's population - about 46% - couldn't afford a one-week vacation last year, a rate around 19 percentage points higher than the EU average.

An Alco poll in June revealed the main causes are rocketing accommodation costs, ferry fares and restaurant prices.

One Reddit user wrote: "We locals can't go anywhere in Greece with these prices, so we stay home. Most of the working class anyways."

"That's what happens when you live in a small poor country and the whole world wants to move here to retire," one replied.

Another one said: "There is a noted problem this year because prices have risen so high that internal tourism is muted.

"Many Greeks can't afford ferry/plane prices on top of food and accommodation."