84 percent of restaurateurs have increased prices – economy

At the end of the tax relief in the hospitality industry, a good eight out of ten companies increased their prices. “After four years of losses, the massively increased costs left companies no choice but to adjust prices,” said the President of the Dehoga industry association, Guido Zöllick, on Monday. Almost 84 percent have raised their prices, a good 16 percent have not yet, according to a survey of 3,175 companies. Half of the companies have reported fewer guests, falling sales and less profit since then VAT In January 2024, after state aid ended, it climbed from seven percent to 19 percent. “Many businesses are feeling a growing price sensitivity and a reluctance to consume among their guests,” said Zöllick.

According to the survey, restaurateurs and hoteliers had an average turnover of 5.7 percent less in March than in the previous year. The all-important Easter business was also slow. 36 percent of the companies reported “good to very good” and “satisfactory” results. A good 28 percent rated their business as “bad to very bad”. For most companies, Easter business (57 percent) was worse than in the previous year, with only 9.7 percent reporting better business.

In the next three months, 45.1 percent of companies expect their economic situation to further deteriorate, while only 15.5 percent expect it to improve. The German Hotel and Restaurant Association (Dehoga) once again called for political support. “We urgently expect measures to relieve and strengthen companies,” said Zöllick. This included reducing bureaucracy, more flexibility for companies and a uniform seven percent VAT on food. In addition to a lack of sales, companies would also have to cope with rising costs – for food (+16.2 percent), drinks (+12.2 percent) and staff (+13.9 percent).