Tbilisi’s restaurant sector is undergoing a major transformation, with investment and customer traffic shifting from traditional tourist streets to multi-concept dining hubs and redeveloped industrial spaces. Speaking on the Real Estate Prospect program, Shota Burjanadze, Vice President of the Georgian Restaurant Association, discussed changing market trends, rental costs and growing competition.
Burjanadze said Shardeni Street, once the capital’s leading restaurant destination, struggled due to its heavy reliance on tourism and infrastructure and management problems. A similar situation affected Agmashenebeli Avenue, where high rents limited opportunities for local businesses, while many foreign operators failed to adapt to the local market, resulting in restaurant closures.
New multi-purpose destinations such as Fabrika, Wine Factory and Tsekhi represent the sector’s next stage of development. These spaces bring together different restaurant concepts and integrate dining with cultural and social activities, creating more diverse experiences for customers and reducing reliance on a single restaurant concept or tourist flow.
Addressing rental costs, Burjanadze claimed that commercial rents in comparable European locations are at least three times higher than in Georgia. He added that proper business planning, operational management, digital development and healthy market competition will be essential for restaurants to remain competitive and meet the evolving expectations of local consumers and tourists.
