VAT increase threatens the catering industry - financial expert warns: Thousands of restaurants are at risk #Gastronomy #VAT #FinancialExpert

VAT increase threatens the catering industry - financial expert warns: Thousands of restaurants are at risk #Gastronomy #VAT #FinancialExpert

According to a report from www.stern.de, the catering industry in Germany is facing a difficult time as VAT is set to rise again to 19 percent from January 2024. Gastro expert Kemal Üres warns that this could mean the end of thousands of restaurants.

The VAT increase is expected to have a drastic impact on the market. Given that the catering industry is already heavily burdened by the impact of the corona pandemic as well as rising costs for energy, goods and labor, the VAT increase will increase prices by around 12 percent. Small restaurants are particularly affected, as they will have little chance of keeping up with the increased costs and maintaining their diversity. Kemal Üres warns of a loss of diversity in the catering industry, with up to 30,000 restaurants expected to close. The price increases will also make kebab more expensive, which will have a particular impact on families who are already paying high prices.

The consequences could include the strengthening of system restaurants such as McDonald's as well as a decline in individual concepts such as take-away businesses. These developments could lead to a loss of importance of cultural and individual gastronomy options.

It remains to be seen whether politicians will reconsider their decision to increase VAT in order to support the catering industry. In the meantime, however, things are looking bleak for many restaurants in Germany.