Financial expert explains: Why innkeepers have to drastically increase their prices

Financial expert explains: Why innkeepers have to drastically increase their prices

According to a report by www.bild.de, restaurateurs like Giovanni Curia and Ronald Scheil are facing a harsh reality: VAT on food and drinks has been increased from 7 percent to 19 percent. This drastic change is forcing restaurateurs to significantly increase their prices. Giovanni Curia expects a decline in sales of around 30 percent and has to raise his prices for specialties such as grilled scampi or sole by several euros. Ronald Scheil also calculated that his beef roulade with Thuringian dumplings and red cabbage would now cost 22.30 euros instead of 19.90 euros.

As a financial expert, I analyze that these price increases will have a significant impact on the market. Consumers will notice higher prices at restaurants, which could lead some customers to eat out less often or place smaller orders. This would lead to a decline in sales across the industry. In the long term, innkeepers could also have difficulty covering their existing costs and hiring new employees, as existing financial resources now have to be used to cover increased operating costs.

In addition, suppliers and other companies in the restaurant industry could also be affected, as restaurants may order less and therefore their sales would also decrease. Overall, the VAT increase could have a significant impact on the entire financial sector, as the changes in the catering industry could impact different areas of the economy.

It remains to be seen how the situation will develop, but it is clear that restaurateurs and the entire financial industry are facing challenges that require careful financial planning and adaptation.