Fight for survival: Gastronomy in the district under pressure!

Fight for survival: Gastronomy in the district under pressure!

The Merzig-Wadern district experienced a particularly challenging time for gastronomy in 2024. According to the Saarbrücker Zeitung , many long-established restaurants and local restaurants had to close. The long-term consequences of corona pandemic cannot be overlooked for these companies. Not only that the increase in VAT is a financial burden to 19 percent, but also the shortage of skilled workers and inflation are increasing the industry.

The reluctance of customers is another serious problem. In times of economic uncertainty and shrinking budgets, many people prefer to eat less away. A particularly impressive example of the challenges in the hospitality industry provides Mario Furlanello, innkeeper of the Bornheim Ratskeller in Frankfurt. According to ZDF he had to intervene in the summer in order to compensate for the lack of personnel. The development of pricing is also worrying because many restaurateurs are forced to pass on the higher costs to the guests.

shortage of skilled workers and inflation as the main problems

The lack of specialists decreased in 2024, as reported Zeit . In June 2024, only 8,800 specialists were missing, while there were over 16,000 in the previous year. However, this reduction is not due to an increase in settings, but to a sunken need in the industry. Many companies hesitate to write out new jobs or continue their expansion.

The situation remains tense because a significant part of the staff has switched to other industries due to the economic framework and the high workload. A third of the newly hired forces are unskilled employees, which also affects the quality of the services. This leads to less competent consultations in restaurants and a relocation to simpler, prefabricated dishes.

Effects of VAT increase

The return to the regular VAT of 19 percent posed major challenges for the catering businesses. According to ZDF, almost half of the Germans stated that they are less eating, which pushes sales further down. The Federal Statistical Office reported a decline in sales in the hospitality industry by 1.3 percent in August 2023 compared to the previous month. Many companies also report that 90 percent of them had to adapt their prices to keep up with the increased costs.

A disturbing sign for the industry is the slump in profits: these have dropped by 22 percent. Against the background of these developments, the hope of an upswing by the European Football European Championship was not fulfilled. The DEHOGA president warns that many restaurants could be faced with the end if the economic conditions do not improve significantly.