Atanas Pekanov's statement that restaurateurs "should lower prices", because prices in Sofia and Vienna were close, is another example of how a person without practical experience in real business is giving recipes to people who pay salaries, social security contributions, rent, electricity, deliveries and taxes every day. This is stated in an official position of the Association of Restaurants in Bulgaria and the Bulgarian Association of Restaurants, quoted by "Focus".
We recall that yesterday on Nova TV, the Deputy Prime Minister harshly criticized the tourism sector. "This is the second sector with the largest price increase in July and August. These are decisions made by Bulgarian traders. And I think they did not do the right thing there. They did not do the right thing because they took advantage of the process of entering the euro to raise prices in a way that harms Bulgarians", he added.
Here is the rest of the association's statement:
Mr. Pekanov has an academic and institutional background — an economist at WIFO, a lecturer in Vienna and a former acting deputy prime minister for the management of European funds. However, this is not experience in the restaurant industry, it is not experience in operational business and it is not experience in bearing the daily risk of opening an establishment, retaining staff and surviving in an environment of constantly rising costs.
Comparing a restaurant bill in Vienna and Sofia without comparing tax burden, purchasing power, labor costs, rents, energy, supplies and administrative environment is not economic analysis. This is convenient political talk.
It is especially cynical to point the finger at Bulgarian establishments when from 2025 the sector will again operate with 20% VAT. If the state wants European prices, let it first ensure European predictability and a fair tax policy. In Austria, the restaurant industry and food are treated under different regimes and reduced rates for certain supplies, while in Bulgaria the industry is once again placed under the full tax burden.
Prices are not determined by someone's whim. They are the result of real costs. When the state collects 20% VAT from every bill, when raw materials, energy and labor are becoming more expensive, and staff are becoming increasingly difficult to find, simply saying “lower the prices” is frivolous. That is why we ask Mr. Pekanov: how many restaurants has he managed, how many employees has he hired, how many times has he paid salaries at his own risk, how many times has he covered losses in a low season and how many times has he stood in front of suppliers, staff and customers at the same time?
The Bulgarian restaurant industry does not need lectures from people who know the business mainly from tables, reports and television studios. An honest conversation about VAT, costs and the conditions under which establishments operate is needed.
If someone really wants lower prices for customers, the first step is clear: reduced VAT for the restaurant sector, as is the case in many European countries. Everything else is shifting the blame onto the business.