As of: February 3, 2024, 4:49 a.m
By: Lars-Eric Nievelstein
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At the beginning of the year, VAT in the catering industry rose again to 19 percent.
Many companies pass on the price increase to their customers.
Berlin – Since the beginning of January, a VAT of 19 percent has applied to food in restaurants.
In itself, this is nothing new: Before the federal government reduced this tax to seven percent in the wake of the coronavirus pandemic, a VAT of 19 percent applied for years.
Now, however, the new number is causing a price shock in the catering industry.
VAT on food in restaurants during Corona |
7 percent |
|---|---|
VAT on food in restaurants since January 2024 |
19 percent |
Price increase for food (Meoton) |
9.7 percent |
20 percent of all restaurants increase prices
Around 20 percent of German restaurants adjusted their prices in the first two weeks of January.
The increase in food prices is around 9.7 percent, drinks are on average 5.4 percent more expensive.
This emerges from figures from Meoton, a provider of data on the catering industry.
The companies also increase the prices of drinks, although these were not affected by the VAT adjustment.
At the beginning of the year, the federal government increased the VAT for catering businesses.
Many companies pass on the price increase to their customers.
Going to a restaurant will be expensive.
© IMAGO / Bihlmayerfotografie
The reason for this is that more expensive drinks can partially offset the price of the food.
Companies would then not have to adjust food prices quite so much.
“In conversations with restaurateurs it came up again and again that they were still observing how their competitors behave,” explained Christian Haese, co-founder of Meoton.
Further decisions from the companies are only expected in the next few weeks.
Some restaurateurs want to increase their prices in several steps.
A third of all catering businesses see a slide into the loss zone
The German Hotel and Restaurant Association (DEHOGA Bundesverband) warns of the “biggest challenges” that entrepreneurs are now facing.
The economic situation of restaurateurs and hoteliers is tense.
Every third company (33.3 percent) fears slipping into the loss zone.
Another third assume that they will be able to hold their own on the market, while the last third dare not make any predictions.
“Politicians are required to give companies prospects,” warned DEHOGA President Guido Zöllick.
Always new burdens are the wrong approach;
The seven percent VAT on food must remain.
“It is absurd that 19 percent VAT applies again to food in restaurants, while food to go, ready-made salad from the supermarket and food delivery continue to be taxed at seven percent.”
This unequal treatment must finally be “permanently eliminated”.
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Economist sees tax reduction “socially counterproductive”
Economists, on the other hand, praised the federal government.
Oliver Holtemöller from the Leibniz Institute for Economic Research in Halle said that there was no longer any reason to give preference to the industry even after the end of the pandemic.
“It is not the job of politicians to ensure that more people go to restaurants.” Friedrich Heinemann from the Leibniz Center for European Economic Research in Mannheim also sees a socio-political problem.
Higher earners in particular would benefit from the tax reduction.
“Wealthy people eat out more often and benefit disproportionately.
This is socially counterproductive.”
Heinemann did not assume that the tax would take full effect immediately.
Prices in the catering industry have risen sharply in recent years and many cost drivers have disappeared.
This should give the industry enough breathing room to at least “somewhat” absorb the tax increase.
Subdued mood in the catering industry
As the Meoton numbers show, the economist was at least partially right.
A large number of catering establishments have not yet touched the prices, even if the increases have been announced.
However, a survey by DEHOGA shows that the hospitality industry has still not returned to pre-crisis levels.
In December 2023, the companies had nominal sales of 4.8 percent less than in December 2019. Calculated for the whole of 2023, sales were 1.6 percent lower than in the year before the crisis.
The mood among catering companies is subdued at best.
More than 41 percent of companies assessed their business development as “cautious” at the beginning of 2024.
A fifth (20.9 percent) rated them as “rather negative,” while 12.0 percent were “pessimistic.”
5.8 percent were optimistic.