Due to the limitations of Covid-19, the catering industry is suffering severely in all countries. It is also going through difficult times in Latvia, and although state aid is currently available, it is not clear what the support measures will be after 1 January. The Forbidden Method compared whether support for the sector is more generous or less in the Baltic neighborhood and elsewhere in Europe.
Latvian entrepreneurs during the current emergency situation There are three types of support – downtime allowances, subsidized jobs and a one-off working capital subsidy.
Support in Latvia:
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Support in Latvia is provided by:
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Estonia
In Estonia, a state of emergency had not yet been declared at the beginning of November and bars and restaurants continued to operate. In the spring, when the state of emergency was introduced in Estonia, downtime benefits were in force, although entrepreneurs had to pay employees another 150 euros a month. There is no talk of support yet and the situation is unclear.
Benefits in Estonia in spring:
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Lithuania
Restrictions have been renewed in Lithuania and caterers can only serve food to take away, and the downtime allowance, which was in force in the spring, has been restored, but unlike in Latvia, it is differentiated.
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Lithuanian entrepreneurs are not really happy with the benefits, because they do not allow to retain qualified employees.
Also in Lithuania, companies can receive one-time subsidies of 100 million euros, of which 94 million euros have already been absorbed.
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During the quarantine in Lithuania in the spring, companies were also compensated for renting office or restaurant premises, now they do not do so. In support of the tourism industry in Lithuania, doctors are issued vouchers worth 200 euros, which can be used for recreation in Lithuanian hotels, and a total of 10 million euros has been allocated for it.
Czech Republic
The Czech Republic is currently the worst affected country in the European Union (EU) on Covid-19, with not only an emergency situation, but even a curfew, and in the evening after 9 pm you can go out for a walk with a dog or go to work. In the Czech Republic, downtime benefits are 100% of salary, but there is no support for working companies, which is dissatisfied with local small entrepreneurs.
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The state helps with rent or lease of premises in the amount of 50% of the average expenses of the last three months and also supports other sectors.
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Meanwhile, the Czech Association of Small and Medium-Sized Entrepreneurs also pointed out that caterers who are only allowed to take food with them have a disagreement with the delivery service Wolt, which charges a 30% commission, while in the Czech Republic the catering business has a profit of 10%. if you can’t earn.
Great Britain
In the United Kingdom, too, caterers who were only allowed to take food with them had downtime benefits. Steven, the owner of a café in Britain, told the show that in the summer, when restaurants and pubs were open, the government offered other forms of support: on Monday, Tuesday and Wednesday, people paid only 50% of their meals, and once a week, caterers reported % of full price from country.
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Belgium
Belgium also has a limited supply of caterers and the introduction of downtime benefits, while the value added tax on food taken has been reduced from 12% to 6%, while prices have remained at the same level, helping businesses to improve their cash flow.
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The restaurant association predicts that 35% -40% of catering establishments will close by the end of next year.
Germany
In Germany, partial and full downtime is paid, employees receive 60% to 80% of salary, and entrepreneurs have a benefit for utilities and other similar regular expenses.
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Matthias Trum, the owner of the brewery and tavern, told the show that only companies that are completely closed receive 75% support, and as the brewery continues to operate, it receives nothing, although demand and sales are lower due to closed pubs.
Germany temporarily reduced value added tax from 19% to 6% and the rate for catering and hotels from 7% to 5%.
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