Björn Freitag fears deterioration in the catering industry
TV chef Björn Freitag fears a variety of deteriorations in the catering industry, not least due to the rising VAT on food.
"I would have liked to see VAT remain at the low rate for at least another year, because I now see an acute threat to many businesses," Freitag told the German Press Agency. "Of course, the gastronomic offer could also suffer if businesses no longer use high-quality seasonal and regional products because it is too expensive for them," he added.
Gastronomy has actually been on the right track in Germany for several decades, with Michelin-starred restaurants in particular enjoying a high level of acceptance - even among younger people. "It would be a great shame if we were to ruin this again in the next few years by increasing prices," Freitag explained. He also believes it is not possible at the moment to "pass on the price increase 1:1 to the guest". Freitag reported that he and many of his colleagues have noticed a clear reluctance and a decline in guests in the catering sector for around a year "due to the new crisis hotspots".
In any case, the shortage of staff has been a problem for the industry for years. "If the shortage continues over the next few years, I see our trade as fundamentally at risk and more and more restaurateurs will turn to convenience products." Employees would and must be paid better. "In addition, the cost of energy and goods has risen, meaning that catering is hardly worthwhile at a high level," the entrepreneur explained.
He has reduced the opening days at his restaurant in Dorsten. "The restriction we are already making as a business is the 4-day week, which we introduced around three months ago," Freitag explained, adding: "We had to take this step in order to motivate the existing staff, as we noticed a clear reluctance on the part of guests to come on normal weekdays."
Bavaria recently failed in the Bundesrat with a proposal to permanently retain the lower VAT rate in the catering sector, which expires at the end of the year. A corresponding motion for a resolution, which sought to extend the lower tax rate of 7% for food to include drinks, failed to gain a majority in the state chamber on Friday. During the pandemic, the tax rate on food in restaurants had been reduced to 7%. The return to the usual tax rate was postponed several times. The traffic light coalition is now insisting that the tax rate will return to 19% at the start of 2024.
The rising taxes on food in the hospitality industry, specifically the VAT, is a concern for TV chef Björn Freitag, as he believes it could force businesses to use lower-quality products or increase prices, potentially deterring customers. Moreover, the hospitality industry has been facing a shortage of staff for years, with many restaurateurs turning to convenience products due to the high costs of energy and goods.
Source: www.dpa.com
