Why Fine Dining Restaurants Are Struggling – And How They Can Survive

The unaffordable luxury of a langoustine

Fine dining restaurants and Michelin-starred establishments are under pressure. Chef Sidney Schutte of Spectrum** used to pay €8 for a langoustine; today, the same one costs €22. Passing on that cost would mean charging €75 for a starter. With tasting menus already above €250, that’s simply not realistic.

Inflation and changing dining habits

Since 2022, ingredient, wage, and energy costs have soared. At the same time, guest behavior has shifted. The classic ten-course menu is out; à la carte or shorter menus are in. Younger diners want quicker meals and often head to a cozy, informal cocktail bar afterwards, like Rocco in Lisbon. The psychological limit of what guests are willing to spend has been reached.

An unsustainable business model

Michelin-starred restaurants often employ more staff per guest, rely on premium products, and aim to pay fair wages. But combining this with prices guests are still willing to pay has become nearly impossible. No wonder René Redzepi of Noma called the fine dining model “unsustainable.”

Why are Michelin-starred restaurants closing?

In the first half of 2025 alone, nearly ten Michelin-starred restaurants shut their doors in the Netherlands. Fitzgerald* in Rotterdam and Flicka* in Kerkdriel are recent examples. Not because they lacked quality, but because margins collapsed.

Five solutions and trends for survival

1. Smaller menus & bistro-style dining – More accessible, better suited to shorter attention spans, with a menu of 3-5 courses (30-40 euro) and à la carte options with mains between 15-20 euro.
2. Smart sourcing & flexible cooking – Working with seasonal produce or surprising alternatives like forgotten vegetables.
3. More efficient staffing – Precise scheduling and scaling down, inspired by chains like Van der Valk; half of the staff goes home at 10 p.m. once the bulk of the work is done.
4. Hybrid models – Linking restaurants to hotels (like Gusto with Conrad) to secure guests, or offering takeaway and delivery concepts.
5. Sustainability & storytelling – Guests are more willing to pay when they feel their money supports honesty, sustainability, and a unique experience.

Conclusion: exclusive or accessible?

Fine dining, as we knew it, stands at a crossroads. Either it becomes a niche supported by luxury hotels, or chefs reinvent their approach to balance quality and affordability. One thing is certain: those who cling to the old model will eventually be forced to close.

Also read: Exclusive Interview: Michael Deane – From Michelin to Bib Gourmand

Q&A: Frequently Asked Questions about Fine Dining and Michelin Restaurants

Why are so many Michelin-starred restaurants closing?
Due to inflation, rising labor costs, and higher prices for premium ingredients, the current business model is unsustainable. Many chefs run at a loss and fear raising prices further.

What does a Michelin-starred meal cost on average?
A full tasting menu often ranges between €150 and €250 per person, excluding expensive wine pairings. For many guests, this makes it a special occasion, not a regular outing.

How do Michelin restaurants handle inflation?
Chefs are switching to more seasonal products, shortening their menus, or launching a second, more accessible bistro-style concept.

Is fine dining still future-proof?
Yes, but in a different form. The future lies in smaller menus, storytelling, sustainability, and a mix of exclusivity and accessibility.

What are the fine dining trends for 2025 and beyond?

• Shorter menus and faster experiences
• Sustainable and local sourcing
• Bistro and hybrid concepts alongside fine dining
• Tighter, more efficient operations
• Luxury with a more casual service style