One thing is clear: in order to keep up with the increased taxes caused by the 19 percent VAT, restaurateurs have no choice but to increase their prices. However, this does not generate more money for the restaurants in Karlsruhe.
“How much are guests willing to pay?”
“The entire price increase will be passed on to the state,” explains Nikola Kovacic, district chairman of DEHOGA Karlsruhe and owner of Lacubanita in Ettlingen. “We don’t have a cent left of it at all.”
Many employees can look forward to compensation for inflation. | Image: Monika Skolimowska/dpa
All the more bitter, considering the impending consequences for the operators: “We rightly ask ourselves how much the guest is still willing to pay. Increases can lead to guests coming to the restaurant less often. This inevitably leads to more Shortening of opening times or even closures,” said Kovacic.
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That would in turn have fatal effects on the catering industry itself. The consequences have been observed for years, especially in rural areas, says the district chairman of DEHOGA. “The blatant errors in our current politics are incomprehensible. Gastronomy is an important part of our culture.”
There is no recovery from Corona
To provide relief during the corona pandemic, the VAT was reduced to 7 percent. “The reduction helped us a lot, but the desired effect did not occur,” explains Kovacic.
The VAT for food in restaurants will rise again to 19 percent. | Image: Sina Schuldt/dpa
There is no recovery from Corona. “The reason for this is various other situations that occurred immediately after the pandemic,” said Kovacic. Lockdown and empty pubs are followed by an energy crisis, inflation and rising wages.
The restaurateur explains that the occasional reluctance of the guests made things even more difficult. “As a result, we are generating less and less profit, even if sales are increasing. The cost pressure is enormous.”
Price increases on the menu
Now there is a 12 percent higher VAT on top. The apparently inevitable consequence: price increases on the menu. “Each company has to decide for itself whether the prices are ultimately increased. If a company increases the prices, it will be around 12 percent for the food,” explains the DEHOGA chairman.
From January 1, 2024, the normal VAT rate of 19 percent will apply again in the catering industry instead of the temporary 7 percent. | Image: Sina Schuldt/dpa
Whether higher prices or not, one thing is certain, says Kovacic: “We all have to work much more efficiently and sharpen our focus on the profitability of our companies.” Because the restaurateurs themselves do not benefit from the price increases.
“In my company I had to increase the prices of all dishes by 12 percent because we want to deliver the usual quality,” explains the owner of the Ettlingen restaurant. Cheap shopping with inferior goods would be out of the question for him.
Lehners Wirtshaus: Longer reduction desired!
In Lehner’s Wirtshaus in Karlsruhe, the temporary reduction in VAT has also only been partially effective, according to restaurant boss Slaven Guida. “Cost increases resulting from the energy crisis caused significant cost increases.”
Image: Lehners Wirtshaus
Therefore, a longer-term reduction in VAT – over another one to two years – would have made perfect sense in the eyes of the restaurant operator. Instead, the Lehners Wirtshaus now also has to raise its prices.
Prices must absorb tax
“In order not to impose a significant price increase on our guests, we decided against a complete adjustment. Instead, there was only a moderate increase in order to keep the impact on the price of lunch to a minimum,” explains Guida. In the long term, however, the 12 percent VAT will have to be absorbed.
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“However, the increases will be carefully designed to minimize the financial burden on our guests,” says the restaurant boss. It is currently difficult to estimate what impact even a small price increase will have on operations. “After three extremely turbulent years, we hope that there will be no major adverse consequences,” said Guida.
2024-01-06 05:13:26
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