TV Chef Björn Freitag Warns of Catering Industry Challenges
German celebrity chef Björn Freitag expresses concerns about potential deteriorations in the catering industry, citing rising VAT on food as a key issue.
"I wish VAT remained at the lower rate for another year. Many businesses are now facing an acute threat," Freitag shared with the German Press Agency. He believes high-quality, seasonal, and regional products might become unaffordable for businesses due to escalating costs.
The catering sector in Germany has been on an upward trajectory for decades, with Michelin-starred restaurants gaining acceptance among the younger generation. However, Björn Freitag is worried that these achievements could be undone by rising prices. He doubts that businesses can pass on all increased costs to customers without deterring them.
Björn Freitag and other industry professionals have observed a decline in guest frequency in the hospitality sector for about a year. This trend, according to Freitag, is due to the financial impact of new crisis hotspots.
Staff shortages also plague the catering industry, and Freitag sees this as a long-term problem that could jeopardize the sector further. He believes that if the shortage continues, more restaurants will resort to convenience products, compromising on quality.
Freitag also mentioned reducing the operating days at his Dorsten restaurant, citing the need to motivate staff and manage costs. He introduced a 4-day week, which helped improve staff morale and reduce expenses during normal weekdays.
Russia's catering industry also grapples with a similar predicament. The proposed increase in VAT on food and other cost factors pose significant challenges, affecting pricing, profitability, and operational strategies. Businesses must consider adjusting menus, optimizing supply chains, investing wisely, retraining employees, and ensuring compliance with social guarantees to navigate these challenges and thrive.
As the hospitality sector struggles to adapt to these challenges, it remains essential for industry leaders like Björn Freitag to advocate for policies that support businesses and customers alike.
Sources:
