VAT increase: Gastro expert is sure 30,000 restaurants will have to close

Kemal Üres
Gastro expert on the VAT increase: “30,000 restaurants will have to close next year”

Kemal Üres is a Hamburg restaurateur and gastro expert. With the “United for Gastronomy” initiative, he has been fighting for six months to ensure that the VAT increase does not happen.

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An extension seems off the table: in January 2024, VAT in the catering industry is set to rise again to 19 percent. During Corona times, restaurateurs were relieved of their burden. At that time, the VAT on food was reduced from 19 to seven percent. The regulation was extended several times, also because of the energy crisis. The catering industry had hoped until recently that the reduction would be extended again. “It actually looked pretty good – and then the stab in the back came: the VAT was to be increased again,” says Kemal Üres, Founder of the catering chain Daily You and initiator of the campaign “Save diversity”in conversation with the star.

The Hamburg restaurateur is bitter about 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: The Dehoga (DGerman Hotel and Restaurant Association), which is also campaigning for reduced VAT, estimates a loss of 12,000 restaurants. For Üres, this number is calculated too conservatively. “The little ones will die out,” says the restaurateur. What’s left then? “There will be a systematization, small shops have no chance. The culture will die out.”

The kebab is getting more expensive

The catering industry is in crisis, and not just since the discussion about the VAT increase. The industry has been hit hard by the pandemic, with cost increases that are difficult to offset. In addition to energy costs and the use of goods, it is primarily personnel costs that push many restaurateurs to their limits. “There are hardly any skilled workers left,” says Üres. “And those we get, we get for a lot of money. For years, the catering industry has put this on the backs of its employees and now the market has corrected.”

In the end, restaurateurs will have no choice but to pass the increase in VAT on to their guests. This means that prices will rise by at least 12 percent, although dishes have already increased by 20 to 30 percent since Corona. “The kebab that now costs 7.50 euros will then cost 8.50 euros. That doesn’t mean that much for a product,” says Üres. “But a family that goes out to eat with four people already pays 90 euros and then has to add another 15 euros. Food shouldn’t become a luxury good.”

Equality in the catering industry

The gastronomy expert is sure that concepts will be individual and do not have the option of system gastronomy: “Take-away concepts, such as McDonald’s, will be on the rise again. This is a stab in the back for the gastronomy sector “. Üres would like politicians to row back or at least redistribute the VAT. “I want equality for everyone. 10 percent for take-away and 10 percent for restaurants. That way everyone can win and it wouldn’t cost the state any more.”

It remains to be seen whether the decision to increase VAT can still be changed.

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