Decline in sales due to increased restaurant prices

Decline in sales due to increased restaurant prices

Rising restaurant prices are making many people in big cities uncomfortable as they are put off by factors such as inflation, high energy costs and increased food prices. In particular, the adjustment of the VAT rate to 19 percent for meals from the beginning of 2023, compared to seven percent by the end of 2022, is putting an additional burden on restaurateurs. A restaurateur from Bad Tölz reports new observations among the guests.

A drastic change can be seen in the fact that guests no longer linger after eating, but rather leave the restaurant immediately after the meal. Extending opening hours is also becoming less and less profitable as nightlife as a whole is stagnating. The pandemic is leaving its mark, but not only affects prices, but also the changed behavior of guests. The switch to delivery services during the lockdowns helped restaurants cushion the initial drop in sales.

Another trend is that guests are increasingly forgoing a second drink. This also confirms the experiences of waiters. Ordering behavior has generally changed, as an example from Munich shows, where hot food is often no longer offered after 9 p.m. A savings trend is even emerging among families, with children no longer getting separate portions.

The adjustment of the VAT rate has resulted in a drop in sales for restaurateurs. The rising prices have led to guests' ordering behavior becoming more cautious. Family celebrations and events will be smaller, and drinks will also be saved. Restaurants are reporting declining sales, with expensive dishes such as steaks and fish dishes hardly finding any sales anymore. Starters and desserts are increasingly being avoided, forcing restaurant operators to save costs, for example by reducing heating and energy costs.