How the planned citizen's benefit and the VAT increase threaten the catering industry: financial expert warns of a decline in sales.

How the planned citizen's benefit and the VAT increase threaten the catering industry: financial expert warns of a decline in sales.

According to a report by amp.focus.de,
The catering scene is under pressure due to the planned return to the 19 percent VAT on food. Anita Stocker, owner of an inn and chairwoman of the Dehoga hotel and restaurant association in the Ebersberg district, warns of an impending death in restaurants due to price increases and citizens' money, which is perceived as being too high.

The planned increase in VAT on food from 7 to 19 percent is expected to lead to a 50 percent decline in sales. According to Stocker, prices would have to be increased or portions reduced, which in turn would deter customers. Citizens' money is cited as a problem for the industry because it is an invitation to do nothing and has already led to a loss of qualified personnel.

The impact of these measures on the catering industry is significant. A 50 percent drop in sales would mean that many businesses cannot survive and may have to close. Increasing prices and reducing portion sizes could further impact demand and lead to a decline in footfall.

The problem of citizens' money also represents a challenge. Due to the possibility of receiving state support without working, catering establishments lose qualified staff. This could lead to a further deterioration in service and quality.

Overall, governments should carefully consider the impact of their policy decisions on industries such as hospitality to minimize potential negative consequences. The financial industry should monitor these developments closely and, if necessary, take measures to prepare for the changes.