Swedish Restaurant Scene Sees Rising Bankruptcies Amid New Openings by Major Players

The Swedish restaurant industry is navigating a challenging landscape in 2025, with an increase in bankruptcies even as prominent players continue to open new venues. In Stockholm’s Mälarterassen and Gustav Adolfs torg, twelve new restaurants have been launched or are planned, part of a significant initiative led by real estate company Atrium Ljungberg. According to Mattias Roussakoff, responsible for leasing food and beverage concepts at Atrium Ljungberg, these ventures will evolve over time, with adjustments made if certain concepts do not succeed immediately (ID 147750).

Despite this expansion, the industry is witnessing rising financial strain. Statistics from the trade association Visita reveal that restaurant bankruptcies have increased to an average of 24 per month in Stockholm County, compared to 14 per month before the pandemic in 2019. Factors include sharply rising costs, with food prices increasing by 39% and rents by 18% since 2022. Thomas Jakobsson, chief economist at Visita, notes restaurants often employ groups with higher unemployment risks such as youth and immigrants, adding to the sector’s vulnerability (ID 147750).

However, consumer demand has been somewhat resilient. Prices for food and drink at restaurants have only increased 22% since 2022, which has helped maintain customer interest. Up to September this year, 194 restaurants declared bankruptcy in Stockholm, a decrease from the 248 cases seen last year. Carl Bergkvist of the Stockholm Chamber of Commerce highlights a better summer season for restaurants this year, attributing increased turnover to lowered interest rates and easing inflation pressures (ID 147750).

Meanwhile, McDonald's is aggressively expanding its footprint in Sweden, announcing plans to open seven new restaurants, including a strategically placed new outlet in Kiruna, heralded by Markus Åberg as a "dream location". The upcoming Mall of Scandinavia opening will mark McDonald's 200th restaurant in Sweden, reinforcing a long-term strategy of targeting high-traffic areas with strong growth potential. The brand operates through 24 local franchisees across the country (ID 147212).

These contrasting trends illustrate the dual pressures facing the Swedish restaurant industry: economic challenges driving closures amid a dynamic market landscape where robust brands and property investors are still seeking growth opportunities. While rising costs and increasing bankruptcies highlight vulnerabilities, consumer spending and strategic expansions suggest pockets of resilience and optimism moving forward.