Navigating the path to recovery in Germany's gastronomy sector is an uphill battle
The German food service industry hasn't fully bounced back from the coronavirus pandemic bruises. In September 2022, businesses reported a 12.6% price-adjusted turnover dip compared to September 2019, according to the Federal Statistical Office, and a 0.2% decrease from the same month the previous year. Pubs, specifically, have endured a staggering 34.5% decline in drinks sector revenue over the past four years, contributing to an overall 8.1% revenue gap for restaurants, pubs, and cafés.
Employment figures have also taken a hit. While September 2022 marked a 4.0% increase in employment compared to the same period in 2021, the level remains a deficit of 6.7% relative to 2019's pre-crisis height. Worryingly, half of restaurant workers in October 2022 labored under low-wage conditions, a stark contrast to the economy's overall 15.2% lowest-paying jobs.
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The Hospitable Struggle
The sector's limping recovery has been affected by the pandemic in many shapes and forms:
- Wave of Disruptions:
- The pandemic brought unprecedented disruptions to the hospitality industry, including lockdowns, travel restrictions, and social distancing measures, which battered tourist hotspots.
- Resilient Tourism:
- Showing remarkable resilience, the tourism sector has begun to recover. Overnight stays at campsites surged by 19.5% compared to 2019, while hotel stays saw a 1.9% increase in 2024, surpassing the 2019 mark by 0.1%.[2]
- Despite progress, international guests have yet to return to pre-pandemic levels, with 85.3 million overnight stays in 2024.[2]
- The Labor Void:
- The pandemic has ignited an employment crisis in the hospitality sector, with nearly 3 million workers leaving their roles between January and April 2024, marking a 204% spike beyond the national average.[3]
- High turnover rates in the hospitality industry have yielded an average churn rate of 40.5% in 2025, demonstrating particularly high rates in the United States and minimal turnover in Canada.[3]
- Financial and Operational Costs:
- Exorbitant turnover rates bring forth financial and operational challenges. Recruitment and training expenses increase, as do operational issues such as inconsistent service quality and guest experiences.[3]
Government Intervention
The German government took action to mitigate the pandemic's impact on businesses, providing financial aid, liquidity support through the development bank KfW, and tax deferrals.[1] The government also introduced support schemes like "Novemberhilfe" (November aid) to shield businesses during the second lockdown, with applications for these funds channeled through tax advisors or auditors.[1]
[1] www.dpa.com*[2] Data from the German National Tourist Board (DZT).*[3] Study by Oxford Economics on behalf of Workforce Institute by Kronos.
