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The complaints were loud when the VAT in the catering industry was raised again to 19 percent three months ago. What are the results three months later?
“Five guests who order something to eat, four of whom don’t drink anything. Two who share a portion – which is okay, we are known for full plates. One who keeps running to his car every now and then to get out of one Drink a bottle of water. As a host, you shake your head,” sighs restaurateur Adrian Valdes. He then offered the thirsty guest “Kranwasser” – tap water – “for free, of course.”
Valdes is the third generation to run Mexico Lindo in downtown Mainz. Tex-Mex cuisine, family-friendly atmosphere, large tables where guests can sit together. The restaurant is still busy, especially on weekends, but during the week he clearly notices the reluctance to consume – business is still a long way from being back to pre-Corona levels.
“Of course we had to increase the prices, everything has become more expensive. I also want to pay my staff decently and not exploit them,” emphasizes Valdes. The VAT adjustment is particularly annoying for restaurateurs. “We are helpless and have zero control over the external circumstances. And the promise to maintain the reduction has simply been broken.”
Those who have money still spend it – but more carefully
Not all innkeepers talk as openly as Valdes. A large property in Rheinhessen, an upscale restaurant and location for festivities and conferences, confirms upon request that they have noticed a certain reluctance on the part of the guests, but would not like to be mentioned by name.
Here too, the prices have been increased – but not just because of the VAT. “We’ve always had to calculate carefully, but we also know that we’re reaching limits when it comes to food costs.” The restaurant was extremely busy at Easter.
“Our impression is that people may go out to eat a little less often, but then treat themselves to something special on certain occasions.” Admittedly, this is an upscale restaurant with a clientele that doesn’t have to give up going out completely for financial reasons.
Fewer guests, less sales, less profit
According to a nationwide survey by the industry association DEHOGA, three quarters of all catering establishments increased their prices at the turn of the year, and a further 17 percent want to follow suit. For the guest, this means an average of 3.5 percent higher prices for food in the restaurant – which spoils some people’s appetite. A survey of 100 restaurants in Rhineland-Palatinate confirms this.
Gereon Haumann, DEHOGA chairman in Rhineland-Palatinate: “44 percent say they have fewer guests than a year ago, and sales per guest have also fallen. In February alone, our companies earned almost 15 percent less than in the same month last year.” The restaurants responded to this with shortened opening hours and slimmed down menus.
Good times Bad Times
“January, February: These are always difficult months. Business is now starting up again – but of course we also had to increase prices. We put that off for ages, and the time had come in mid-March.” Frank Karrenbauer’s Landgasthof Hochwaldhof is a long-established excursion destination on the edge of the Hunsrück-Hochwald National Park. “Our guests go along with it, we tried to do it in a way that people are happy.”
The restaurant benefits from the neighboring campsites and is also a popular destination for bus trips. “But you also have to say that there are fewer restaurants in the area than before. And the guests are now coming to us.” His recipe for staying in a good mood even in times of crisis? “We’re not going crazy. We’ve done this for 33 years, sometimes there are bad times, then good times come again.”
“The glass is always half full”
This is also Adrian Valdes’ motto. When customers are annoyed about price increases, it really gets to him and he tries to explain his reasons. For him and his guests, his restaurant is much more than just a place to eat well. “We have a lot of regular guests who feel at home here, they keep us going, they are the reason we get up in the morning with a smile.”
How does he see the future for his catering business? “The glass is always half full. When you’re stressed and think it’s half empty, you hope it’ll be half full again.”