Value added tax increase - Gastronomy expert is very worried: kebabs will become more expensive - and thousands of restaurants will have to close down
Since January 2024, VAT in the catering industry has risen again to 19%. In coronavirus times, restaurateurs were given relief. At that time, VAT on food was reduced from 19% to 7%. The regulation was extended several times, partly due to the energy crisis. The food service industry had hoped until the end that the reduction would be extended again. "Things were actually looking pretty good - and then came the stab in the back: VAT is to be increased again," says Kemal Üres, founder of the Daily You restaurant chain and initiator of the "Save Diversity" campaign, in an interview with stern magazine.
The Hamburg restaurateur is bitterly opposed to the decision and warns of a huge loss of diversity in the catering industry: "I estimate that 30,000 restaurants will have to close next year." Just for comparison: Dehoga (German Hotel and Restaurant Association), which is also campaigning for the reduced VAT, estimates a loss of 12,000 restaurants. Üres believes this figure is too conservative. "The small ones will die out," says the restaurateur. What will be left? "There will be a systematization, small stores won't stand a chance. The culture will die out."
Kebabs will become more expensive
The restaurant industry is in crisis, and not just since the discussion about the VAT increase. The industry has been hit hard by the pandemic, in addition to cost increases that are almost impossible to offset. In addition to energy costs and the cost of goods, it is primarily staff costs that are pushing many restaurateurs to their limits. "There are hardly any skilled workers left," says Üres. "And the ones we do get, we get for a lot of money. For years, the catering industry has borne the brunt of this on the backs of its employees and now the market has corrected itself."
In the end, restaurateurs will have no choice but to pass on the VAT increase to their guests. This means that prices will rise by at least 12 percent, although food has already increased by 20 to 30 percent since corona. "The kebab, which now costs 7.50 euros, will then cost 8.50 euros. That doesn't make that much of a difference to a product," says Üres. "But a family eating out with four people already pays 90 euros and then has to add another 15 euros. Food should not become a luxury good."
Equal rights in the restaurant trade
The gastronomy expert is certain that it will affect concepts that are individual and do not have the option of system gastronomy: "Take-away concepts, such as McDonald's, will be on the rise again. That's the stab in the back for the restaurant industry". Üres would like to see politicians row back or at least redistribute the VAT.
It remains to be seen whether the decision to increase VAT can still be shaken.
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The VAT increase for the catering industry, set to take effect in January 2024, has worried gastronomy experts, as it will lead to an increase in the price of kebabs and potentially cause thousands of restaurants to close, with estimates ranging from 12,000 by Dehoga to 30,000 by Kemal Üres. Furthermore, in light of the ongoing pandemic and rising costs, many restaurateurs will have no choice but to pass on the VAT increase to their customers, leading to a significant increase in food prices.
Source: www.stern.de
