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Fight for survival: North Saxony's gastronomy on the verge of extinction!
In 2025, the catering industry in northern Saxony will struggle with high costs, falling overnight stays and the hope of a VAT reduction.
Fight for survival: North Saxony's gastronomy on the verge of extinction!
The gastronomic landscape in northern Saxony is facing major challenges. Rising costs and fluctuating demand are making things difficult for companies. Axel Klein, general manager of DEHOGA, emphasizes that many catering establishments are in a deep valley. “We have reached rock bottom,” he said clearly in a recent report lvz.de.
The situation is not getting any easier, given the fact that 1.5 percent fewer overnight stays were recorded in Northern Saxony from January to May 2023 and catering sales fell by 5.8 percent compared to the previous year. Klein emphasizes that many people simply can no longer afford to go to restaurants. A boom in delivery services also puts traditional restaurants at a competitive disadvantage, as they can operate with lower personnel costs and cheaper tax rates.
Tax revenues and market adjustments
A particular problem arises from the increased tax burden for restaurants, which was increased from 7 to 19 percent after the corona pandemic. In contrast, food stalls and delivery services benefit from reduced tax rates. Klein sees a ray of hope in the planned reduction in VAT on food from January 1, 2026. This measure, which loudly zdfheute.de initiated by the federal government could finally relieve the industry.
Ingrid Hartges, general manager of DEHOGA, explains that a reduction from 19% to 7% will cost up to four billion euros annually. This financial aid could help companies cover their costs and no longer have to pass on the full price increases to customers. Nevertheless, it remains unclear whether there will actually be significant price reductions, as many companies have not been able to pass on the tax increases in the past.
Outlook and collaboration
However, the industry is optimistic. Close cooperation between gastronomy, regional producers and tourism organizations is seen as a key to success. Klein also refers to funding programs such as the “BioRegio Model Regions”, which can support the integration of regional food into restaurant kitchens.
The development in the number of trainees in Saxony is particularly positive. This increased by 5.9 percent compared to the previous year, indicating growing interest in the hospitality industry. The need for regional and high-quality gastronomy is there, and many see great potential in the future development of the industry.
In summary, it shows that despite the challenges that are currently affecting the North Saxon gastronomy sector, both political and operational measures are being taken to improve the situation. Keeping a close eye on the coming changes, particularly in terms of tax policy, could provide restaurants with the support they need to get out of the valley.