Baku residents are increasingly discussing two parallel trends in the city’s restaurant sector: higher prices and smaller portions.
The shift is most noticeable in popular breakfast sets, where customers say they are paying more while receiving noticeably less compared to last year.
Why is this happening – and what is driving cafes and restaurants to change their pricing and serving strategies?
Economist Rashad Hasanov told Patrul.az that official data confirms a 5.4% increase in food-service prices during the first ten months of 2025:
“I have not conducted independent diagnostics regarding portion sizes, so I cannot confirm that specific trend. But regarding price growth – yes, official figures clearly show that food-service prices rose by 5.4% over ten months. This is a significant indicator, even though it remains below the national inflation average.”
Key drivers: food inflation, wage growth, and rising rent
According to Hasanov, several structural factors are pushing restaurant prices upward:
Sharp increase in food prices
Food products in Azerbaijan rose by about 8% in 2025, directly increasing the cost of preparing each dish.
Growing wage expenses
“The average monthly salary in the country grew by roughly 9.5% over the past nine months,” the economist noted.
Higher wages raise overall service-sector expenses and inevitably add pressure to final consumer prices.
Higher rents
Commercial real estate remains one of the fastest-appreciating assets, leading to higher rental costs – a major burden for restaurants.
Taken together, rising food costs, increased labor expenses, and more expensive rent translate into across-the-board price increases. Restaurant owners, economists say, are forced to pass these costs on to customers.
Some do so by raising menu prices directly, while others try to soften the backlash by quietly reducing portion sizes instead.
