Lack of Funds for Schnitzel's Price Reduction?
The Hessian hospitality industry has experienced a tough start to the year, with preliminary data from the Statistical Office of the State of Wiesbaden revealing a decline in turnover for both the accommodation and gastronomy sectors.
In the first half of 2025, the turnover in accommodation increased slightly by 0.6%, but this was not enough to offset the 3.1% decline in the hospitality industry as a whole compared to the previous year. The gastronomy sector saw a more significant drop, with a 3.6% decrease in turnover.
Gisbert Kern, a prominent figure in the industry, attributed the continuous decline in sales in the gastronomic sector to a decrease in the number of guests and overall spending. This led to a 17% drop in gastronomy revenue in the first half of 2025 compared to 2019.
Changes in consumer behaviour, with customers becoming more cautious due to inflation and various crises, are also contributing factors to the decline in turnover. Many customers are seen skipping starters or coffee to save money.
The decline in turnover is partially attributed to customers spending less money in the catering industry. The total number of employees in the Hessian hospitality industry decreased slightly by 0.2%, with the number of employees in gastronomy decreasing by 0.4% in the same period. However, the Statistical Office of the State did not provide absolute numbers for the total number of employees.
Partly moderately pleasant weather in the first half of 2025 has negatively impacted Hessian hotels and restaurants, further adding to the industry's woes. Some caterers and hoteliers in the state are also required to repay corona quick aid of up to 30,000 euros, which is an additional burden for the industry.
However, there is some hope on the horizon. The new federal government plans to reduce the VAT rate on food from 19% to 7% for the coming year, which could provide the industry with more scope for investments.
As the industry navigates these challenges, it remains to be seen how it will adapt and recover in the coming months.
