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French Fast-Food Sector Warns of Up to 26,200 Defaults by 2026

Industry leaders quit government talks after a Xerfi report showed the reforms could drive thousands of outlets into the red.

Restaurant Burger King à Ancenis, en Loire-Atlantique, le 29 avril 2025.
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Overview

  • A July 2025 Xerfi analysis projects that up to 26,200 fast-food operators could run losses by 2026 under a combined scenario of tax and regulatory changes.
  • The assessment covers a proposed VAT increase, a soda tax set to double in 2026 after a 2025 hike, cuts to low-wage payroll tax breaks and expanded restaurant voucher use in supermarkets.
  • Allowing meal vouchers for supermarket shopping is estimated to siphon off €100 million from fast-food venues in 2025 and €195 million in 2026.
  • Between 2018 and 2023, rising operational expenses halved sector net profits and pushed failure rates to 2–2.5 percent, the highest in recent years.
  • Trade bodies Snarr, Umih and GHR withdrew from the Assises de la restauration working groups at Bercy in protest of the meal voucher reforms.