Rising prices causing a decline in dining out among Karlsruhe residents
In the heart of Germany, the city of Karlsruhe has seen a significant change in its gastronomy sector. A decrease in the number of people dining out has become a growing concern for local restaurateurs, as they grapple with rising costs and economic challenges.
During the COVID-19 pandemic, the German government temporarily reduced the VAT on food from 19% to 7%, a move aimed at relieving the gastronomy sector. This nationwide measure, including Karlsruhe, was a much-needed reprieve for the industry. However, as of 2024, the VAT for on-site dining was raised back to 19%, while take-away and delivery remained at 7%. A planned permanent reduction back to 7% is set to begin in 2026.
The trend of cooking and shopping at home, driven by economic reasons, seems to be shaping the daily lives of many Karlsruher. This shift has had severe consequences for local restaurateurs, who are now struggling to attract customers.
Simply offering delicious food is no longer sufficient for attracting customers in Karlsruhe. Local restaurateurs are seeking creative concepts to stand out and attract diners. The increased minimum wage and other costs in the gastronomy sector have also contributed to the high costs that restaurateurs face.
The decrease in dining out has taken a toll on the city's cafes and restaurants, with many families in Karlsruhe finding it difficult to afford dining out, deeming it a luxury. The situation remains tense due to these financial struggles, and further insolvencies and closures in the gastronomy sector are possible if the situation does not improve.
Local restaurateurs are raising the alarm about the decrease in customers. They encourage Karlsruher to visit their favorite cafes or restaurants more often, even for a snack or drink. The entire industry hopes for a reduced VAT rate on food, as was the case during the corona period, to help alleviate some of the financial burden.
As the city navigates these challenges, the gastronomy sector in Karlsruhe continues to adapt and innovate, striving to provide quality dining experiences for its patrons.
