Alarming wave of bankruptcies: Gastronomy in MV is fighting for survival!

Alarming wave of bankruptcies: Gastronomy in MV is fighting for survival!

The economic situation in Mecklenburg-Western Pomerania shows worrying trends. The slowdown in the economy is having an impact on many industries, especially the catering industry. According to Tageskarte reports, the number of corporate bankruptcies in 2024 increased by 7.5 percent to 273 applications. What is particularly striking is that the creditors' claims add up to around 226 million euros, which means an increase of 10.7 percent.

An increasingly worrying picture emerges when one looks at bankruptcies in the hospitality industry. In 2023, one in nine insolvencies was a case from this industry, a total of 32 proceedings, a dramatic increase of 52 percent compared to 2022, where there were only 21 insolvency proceedings. The development shows that the situation for many catering establishments, often owner-managed, is becoming increasingly precarious. It is noteworthy that operational tasks that do not appear in the statistics could exacerbate the actual situation.

Decline in sales and rising costs

Sales in restaurants in the first quarter of 2025 were around 18 percent below the level before the corona pandemic. In particular, government aid, which is often demanded back, is a further burden for companies. In addition, rising energy, food and personnel costs are causing problems for many restaurants. Lars Schwarz, President of the Hotel and Restaurant Association (Dehoga) in MV, describes the current insolvency figures as alarming.

As the data on the statistics portal shows, a total of 126,597 new businesses were registered in Mecklenburg-Western Pomerania in 2024, while at the same time 128,892 businesses were deregistered. This imbalance highlights the challenges facing entrepreneurs. To help, there is hope for a reduction in VAT for food in the catering industry from 19 to 7 percent. This could ensure the survival of some companies.

Macroeconomic developments and trends

The nationwide developments are also alarming. The Debtor & Insolvency Center reports that 5,209 corporate bankruptcies were registered in Germany in the first quarter of 2024, representing an increase of 26.5 percent compared to the previous year. In this context, a further increase in insolvencies of around 10 percent is expected for 2024. Persistent inflation and rising interest rates are negatively impacting the financial stability of both businesses and consumers.

These trends and developments could have serious effects on the economy and the employment situation in Mecklenburg-Western Pomerania and beyond. The challenges are great, but the solutions are few and often distant.

The financial structures of local businesses are at risk and they are fighting for every bit of sales. The gastronomy policy landscape, characterized by bankruptcies and closures, will certainly remain a hot topic in the coming months. Further developments will certainly cause a stir in the coming months.

There is hope for a positive turnaround - it remains to be seen whether the hoped-for relief will have a short-term effect.