First the pandemic, then the war in Ukraine, including the explosion of energy costs and inflation. And now there is a staff shortage. Gastronomy continues to suffer – and it is changing.
Falsely, Austrian gastronomy is currently being accused of unabashedly inflating prices in pubs, inns and cafes to earn a golden spoon. In fact, the hospitality industry, like the economy as a whole, suffers in many areas from the appalling price increases of supply companies. “The gastronomy industry is currently struggling with the fact that 38 percent of the goods it needs come from highly energy-intensive sectors,” said Mario Pulker, president of the Chamber of Commerce for gastronomy, summing up the problem. Prices for some products have simply exploded.
Cooking oil for frying, for example, now costs 200 percent more than two years ago. Meat costs are up 50 percent and dairy products (cream, cheese, yogurt, cottage cheese, etc.) internally referred to as the “white palette” are up 22 percent in March alone. “Many restaurants and taverns suffer from a lack of staff. Of the 250,000 employees in the industry, 40 percent work part-time. That means extra staff must be hired,” Pulker explains another often forgotten problem on the pallet.
Price increases not transferable to customers
As a result, a “new tavern die-off” spread. Local operators are closing because they cannot pass the increased costs on to guests to an economic degree. “And before they go out of business, many innkeepers close their doors. Rental and leasehold companies in particular are being hit enormously,” says the expert. Even if professionals from the Chamber of Commerce consult with those affected, according to Pulker, a huge bang can be expected this year and next. “We expect it to catch many more. Alas, one must assume that the sword of Damocles hovers over every tenth innkeeper in all Austria.”
At the same time, the industry is changing: if an inn closes, a new operator usually only survives if it invests. The tavern is, as it were, transformed into a restaurant. “If a good atmosphere is provided together with an excellent service for high quality, guests and new customers will come,” says the chairman of the Chamber of Commerce.
Massive growth in food delivery
Despite the crisis, delivery companies are experiencing an upswing. Especially in urban areas, delivery kitchens are recovering rapidly from the economic downturn (+112%, see graph above). “Only the cessation of inflation and the end of the war will end the crisis,” Pulker said.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
