PRO.VAR, the national restaurant association, fears that the
absence of specific measures to support the sector will translate into
"thousands of closures" and "tens of thousands of
unemployed". The Christmas season, which is approaching, seems to bring
"excellent expectations", as "many bookings are appearing"
and customers "seem willing to pay a little more", but the concern is
with 2023 and the increase in costs that are coming, namely with the rise of the
minimum wage, according to Dinheiro Vivo.
Daniel Serra, president of the association, recognises that
the restaurant sector comes from a summer in which turnover was "above
average", however, he assures that, with the "enormous pressure"
upstream, "entrepreneurs have never had to do so many accounts and even
resort to technical help" to arrive at final consumer price values. The
net results "are not what was expected" and the association fears
that, given that, by its nature, it is a sector that receives cash, but
payments are deferred, many entrepreneurs "only realise the financial hole
at the end of the year ".
According to PRO.VAR, restaurants face increases of 50 to
100% in energy bills and 25 to 30% in raw materials. And with personnel costs
"on the rise", as the lack of human resources is forcing
"increasing salaries and giving other perks", such as more time off,
to retain workers. Even so, "many restaurants today are unable to work at
full capacity due to the lack of workers".
Daniel Serra is not surprised by the data advanced by
Kantar, in a recent study, which shows that, with each visit to restaurants,
families are spending an average of 15% more than in the first half of 2019.
"This increase exists, but it should be much more, in
the order of 25 or 30%", ensuring that restaurants are "absorbing
part of the costs", but that this puts them on the way to a "perfect
storm”, since, with the end of the summer, there are fewer customers,
especially foreigners.
This could be a good thing; there are many coffee shops and restaurants which are filthy and smelly. Those really should be closed down. If restaurants and coffee shops are clean, comfortable places, with good quality, people will go. Otherwise, why accept such low levels of bad service and being in smelly places? Customer service seriously needs to begin in Portugal.
By K from Other on 29 Nov 2022, 10:03
If raw costs have risen by 25-30% for restaurants, who get discounts on bigger orders, and inflation being even more for the average person's groceries, no wonder why people go less to a restaurant and spend less. The money isn't there, thats it.
Don't know if I am missing the point, but this seems rather obvious given the many inflation articles here.
I do understand times are difficult for business, but they are even tougher for individuals.
By Mike from Lisbon on 29 Nov 2022, 20:05
Try working the full year instead of a quarter it
By J from Lisbon on 30 Nov 2022, 08:57