Restaurant chain shuts down outlet in Baden-Württemberg after 26 years.
In a significant blow to the restaurant industry in Stuttgart, the popular 'Enchilada' restaurant on Eberhardstraße is set to close its doors on July 31, 2025. This closure marks the end of over 26 years of service for the beloved establishment.
The 'Enchilada' restaurant is part of the 'Concept Family Franchise AG' chain, with the Stuttgart location being one of its most iconic. However, the parent company DEHAG Deutsche Hotel- und Gaststätten Aktiengesellschaft sees no future for the Stuttgart location, signalling another significant loss for the industry.
The COVID-19 pandemic has taken a toll on many restaurants in Baden-Württemberg, with some establishments still struggling to recover their customer base. The ongoing trend of remote work, contact restrictions, and consumers shopping online more have led to fewer passersby and spontaneous customers for restaurants, exacerbating the challenges faced by the industry.
Inflation-driven price increases and the 19 percent VAT rate for food consumed on-site in Baden-Württemberg are additional burdens for restaurant operators. These challenges are not unique to the 'Enchilada' restaurant, as evidenced by the 27 percent rise in insolvencies in the German gastronomy sector in 2024 and the 67 percent increase in insolvencies among caterers and food service providers.
The Baden-Württemberg state government has taken steps to improve conditions for restaurant operators, such as temporarily introducing value-added tax reductions and planning to reduce bureaucracy. However, these measures do not seem to be preventing further restaurant closures in the region.
The empty city centers are another challenge for the restaurant industry in Baden-Württemberg. As more people work from home, the traditional lunch rush has diminished, further straining the industry.
The closure of the 'Enchilada' restaurant is a reminder of the ongoing challenges facing the restaurant industry in Baden-Württemberg. Despite these difficulties, the industry continues to persevere, with many establishments adapting to the changing landscape to survive. The resilience of the restaurant industry is a testament to its importance in the community and its ability to adapt in the face of adversity.
