22% of Restaurant Owners Seek Price Hikes Despite Lower VAT

22% of Restaurant Owners Seek Price Hikes Despite Lower VAT

A recent Dehoga survey of nearly 700 restaurants shows that 22 percent of owners intend to raise their prices, despite the recent cut in value‑added tax to 7 percent for food served on‑site. The survey was highlighted by the “Handelsblatt” in its Thursday edition. Dehoga president Guido Zöllick told the newspaper that the sector remains under severe pressure; declining revenue is being hit by rising expenses, especially labour costs driven upward by the recent €1.08 raise in the legal minimum wage to €13.90 per hour. Consequently, more than a fifth of the establishments report being forced to cut staff, and an equal number said they will increase prices.

Zöllick added that many restaurants are operating at their limits: 34.8 percent describe their business situation as “poor” or “very poor”, and half report falling guest numbers, lower net sales and reduced profits. In 2025 the number of insolvencies rose again, according to the credit agency Crif, reaching 1,819 cases – a 32 percent increase. Crif currently classifies 14,400 gastro‑firms as at risk of insolvency. “Small, family‑run venues are especially affected” said Crif‑Germany chief Frank Schlein, noting that these premises often lack the financial resilience to absorb rising costs.