Now that the dust has settled from the latest restaurants
survey commissioned by ACE, President Michelle Muscat
shares her reactions and views about where the industry
is heading.
Ramona Depares reports.
A couple of months on from the release of
a national survey into Malta’s catering
sector, the findings are starting to sink
in. Patterns have emerged, reactions are
sharper, and the picture is clearer, both in
terms of what customers want and what restaurants may
be getting wrong.
Michelle Muscat, President of the Association of Catering
Establishments (ACE), is now urging restaurant owners
to take stock. Her call comes as the industry reflects on
key insights from the ACE-commissioned survey, which
captured the sentiments of both locals and tourists
around value, service, and expectations.
The survey, conducted by Prof. Zammit Marmarà for
ACE, digs into how behaviour has changed in recent years
— not just due to the pandemic, but also rising prices and
shifting expectations. It paints a mixed picture. And for
Muscat it’s also a prompt for reflection.
“Every operator must understand that the customer is
key to their sustainability and of the industry at large,”
Muscat said. “Weaknesses and shortcomings should not
be seen from a negative point of view but rather as an
opportunity for us to grow – both individually and most of
all collectively.”
Industry under pressure
Malta’s restaurant landscape is crowded — nearly 4,000 catering establishments for a population of 550,000. Add to that the ongoing impact of inflation and staff shortages, and the competition is intense.
“This is a dynamic market where customers predominantly expect sustainable solutions, flexibility, personalisation, and a wide range of offerings for every taste – from economical and simple options to high-end restaurant catering,” Muscat said. “It is also a constantly changing market in which the catering industry is undergoing a shift shaped by technology, sustainability, and changing tastes.”
Her advice? Don’t bury your head in the sand. “Every operator must refrain from adopting the ostrich approach. We must avoid being short-sighted.”
Tourists spending less, dining cautiously
Tourists in Malta are dining out once a day on average and spending around €42. It’s a clear sign, according to the report, that many are sticking to fixed budgets. Most likely, they’re staying on bed and breakfast or half-board packages. High-end restaurants? Not on the radar.
This aligns with what economists Silvan Mifsud and Alan Arrigo flagged last year — tourist numbers are up, yes, but spending per visitor isn’t. For Muscat, knowing this kind of detail matters. “It is in this customer-centric context that it is the duty of ACE to invest in research and data to offer a clear picture of the state of play of such an important component of what has often been defined as ‘the most important visitor on our premises’.”
Locals are eating out again — but have concerns
When it comes to locals, habits seem to be returning to
pre-COVID levels. A quarter of Maltese respondents said
they dine out once a week. Just under that — 23% — said
they go out to eat once a month. It’s in line with Malta’s
2018 standing, when the country ranked third in the EU for
household restaurant spending.
But there’s a sticking point. Locals, unlike tourists,
aren’t convinced they’re getting good value. Price isn’t
necessarily the issue — many said they dine out for leisure
rather than cost — but something isn’t sitting right.
Muscat doesn’t skirt around this. “The age-old adage
‘the client is king’ has long been and continues to be the
guiding ethos,” she said. “It continues to be so, because
at the end of the day with no customer, there is no
business. And with no business, there’s no pay cheque for
us to take home.”
It’s a sentiment she says operators should carry with
them — especially in a fast-paced industry, where trends
shift quickly, and diners expect more for their money.
Tips are modest, but expected
The survey also looked at tipping. Most respondents
— tourists and locals alike — felt that 5% was fair. That
lines up with what’s common across Europe. People
usually round up the bill in casual settings. In more formal
restaurants, a 5–10% tip tends to be the norm.
What next?
For Muscat, the value of the survey lies not just in what it
says — but in what operators choose to do with it. “The
research and economic study presented today plays an
important role by providing a raw picture of client trends,
tastes, habits and preferences,” she said. “Above all, it is
a research that calls us to ride on our strengths yet also to
act on our weaknesses and shortcomings.”
The message to the industry is straightforward. Listen,
adjust, and don’t assume things are fine because people
are still showing up.
“Customers are paying attention, and the industry needs
to do the same,” Muscat concludes.