Those who like to dine in a restaurant are now paying much more for this pleasure than before the war in Ukraine began, writes ARD. The Association of German Hoteliers and Restaurateurs announced that prices in restaurants have risen by over 26 percent since the beginning of 2022.
This price hike is seriously affecting business, says the association's chairman, Guido Zölik. According to him, many people are refraining from visiting establishments because of the high prices. "Customers are much more careful about what they order, they go out less often and choose cheaper dishes," he explains. So that they don't end up eating an omelet for 100 euros in a restaurant in Thailand, or being asked for 22 leva for a "traditional Bulgarian salad" with parsley dressing in an unprestigious establishment outside the center of Sofia.
In Germany, according to official statistics, hoteliers and restaurateurs recorded a 15.1 percent decrease in turnover in the first half of 2025 compared to 2019 - the last year before the pandemic. The decline in revenue is 3.7 percent for the last year.
Less revenue, more expenses
"The situation in the sector is very serious. We are facing a huge challenge - the sixth consecutive year of losses," explains Tsölik. Another reason why hotels and restaurants are currently having a very difficult time - there are fewer customers, fewer sales, but at the same time costs are increasing.
Since 2022, labor costs have increased by more than 34 percent, and the prices of food, soft drinks and energy by around 30 percent. "In many restaurants, personnel costs are already over 40 percent of turnover, and the costs of goods are well over 30 percent," says Zoelik. Added to this are the costs of energy, insurance and taxes, as well as increased lease payments, which are usually 10 to 15 percent of turnover.
Can food get cheaper
The study by the Association of German Hoteliers and Restaurateurs also found that 72 percent of companies have failed to make the necessary investments. About a third rate the state of their reservations for August and September as bad or very bad. Only 23.8 percent indicate that the current situation with reservations is good or very good. "The outlook is bleak", Tsölik told ARD.
Another factor in the negative trend is the cancellation of the VAT reduction for food in restaurants. From the beginning of 2024, restaurateurs will once again pay 19 percent instead of the temporary seven percent, and this will inevitably affect prices for the end consumer. Therefore, businesses are now hoping that the new government will keep its promise to permanently reduce the tax rate for food in restaurants from the beginning of 2026. This point was included in the coalition agreement of Friedrich Merz's cabinet, ARD recalls. If this happens, businesses will have better opportunities to hire new people and catch up on investments.
It remains to be seen whether the lower VAT will be passed on to guests in the form of lower prices. The survey by the Association of Restaurateurs and Hoteliers shows that just under half of the establishments surveyed (44 percent) want to offer their guests better value for money. However, the association's chairman, Cölik, points out that price reductions will largely depend on other costs in the coming months.