Everything for guests, but for more, unfortunately

Restrictive measures are felt by the gastro segment, but restaurants have refrained from increasing their prices so far. This, however, will not remain so forever. The increase of the VAT and incidental charges related to wages have had their effect on the Horeca sector. Increasing the VAT of food by 5 per cent has an accumulated effect on guests of restaurants and confectioneries. Operating costs of restaurants and Horeca businesses are growing, but these cannot be transferred to customers. Smaller profits or even temporary losses have to be tolerated in order to keep present customers. Excessive savings should also be avoided, since these can also result in losing customers. Only businesses operating in areas frequented by tourists have been able to increase their prices moderately. On the other hand, some businesses have already closed as a result of austerity measures. The Industry Board is working on measures which can compensate the effects of the restrictive policies of the government. According to Tibor Rosenstein, owner of Rosenstein Restaurant, signs of the Government policy were already visible at the end of year banquettes held in the restaurant, though they have only built the five per cent VAT increase into their prices last year, in addition to the ten per cent service charge. “I do not want to raise prices, I am waiting to see what will happen, because I prefer to make less money to losing customers, or laying off employees” – he said.