Five gourmet restaurants have closed in Berlin in the last year. Business is being hit by rising costs and falling demand.
ADVERTISINGFine dining is disappearing in Berlin. Five of the German capital’s most famous gastronomic establishments have closed in the past year alone. Others are rethinking their concepts to attract customers and stay afloat. The situation is serious, says chef Sebastian Frank of the two-Michelin-starred Horváth.
Sebastian Frank, chef at Horváth: “When I started here in 2010, there were only seven Michelin-starred restaurants, and 10 years later there were 20. People were willing to spend their money then. Things have changed dramatically now. The market is shrinking again. This little bubble, as you might call it, is starting to deflate. Business, whether it’s fine dining or the restaurant industry in general, will start to regulate itself. A lot of restaurants will close, supply will shrink, and the market will adjust.”
Last year, nearly one in ten restaurants in Germany closed, according to a recent study. More bankruptcies are on the way, experts warn, as businesses have been hit by sharp inflation before they could recover from the pandemic.
Liv Stroud, Euronews: “The German hotel and restaurant industry association DEHOGA sounded the alarm back in January that restaurants would have to close. The government has again raised VAT for restaurants from 7 to 19% after the pandemic. It looks like the unfavorable forecasts are already coming true.”
Gerrit Buchhorn, DEHOGA: “Basically, we have to recognize that in recent years, due to COVID, wars, etc., operating costs have increased significantly, which is especially felt by restaurants and investors. This, in turn, affects prices. Ultimately, you have to be willing to pay. Or rather, the customer has to be willing to pay.”
Sebastian Frank, chef at Horváth: “I think COVID was just the beginning. I think there’s something much bigger on the horizon where we’re going to have much bigger problems than whether we can go to a restaurant tomorrow or not.”
For many Berlin fine dining restaurants, 2023 was a poor year for profit. It looks like this year, despite the European Football Championships that took place in Germany, will leave the owners with a similarly bitter taste.
