DEHOGA warns: hospitality industry on the abyss - 7% VAT required!

DEHOGA warns: hospitality industry on the abyss - 7% VAT required!

The situation in the German hospitality industry is anything but rosy. The industry has been struggling with massive sales losses for five years, and declining figures are again forecast for 2025. In a recent report by Associationsbuero.de , it is pointed out to an upcoming press conference of the German Hotel and Pastor Association (DEHOGA), which on September 2nd 2025 takes place in Berlin. There, concrete figures on the sales situation in July and the expectations of politics are to be presented.

The challenges with which the gastronomy is confronted are complex. From increasing energy costs to bureaucratic hurdles to rigid working time regulations, there are numerous factors that also burden the situation. In addition, the shortage of skilled workers increasingly feels these problems after corona pandemic. This topic is also strengthened by the innkeeper Mario Furlanello from the Bornheim Ratskeller in Frankfurt, who reports that he had to serve himself during the summer hype and simplify his menu in order to be able to work efficiently in the kitchen despite a lack of personnel. When asked about entrepreneurial reality, Furlanello said that the shortage of staff has now subsided somewhat, but his gaze was still aimed at recruiting specialists, including from abroad.

political demands to the government

Important demands of the DEHOGA include the return of VAT for Essen to 7 % and flexible working hours for bridge control between employees and their employers. These concerns are to be discussed at the press conference, which serves as a platform for dialogue with media representatives in order to make the concerns of the industry visible. The past two years have shown that in the catering trade, every third company fears about its existence, which is due to the economic imponderables and a rapid increase in costs for personnel and raw materials.

A current survey by the Federal Statistical Office shows a real sales decline in the hospitality industry of 1.3 % in August 2023 compared to the previous month and even 2.4 % compared to the previous year. The customer sensitivity of customers limits the possibilities to transfer increased costs to the food prices. Many restaurants now offer so -called notices in order to draw attention to their high personnel requirements. According to a Study of the IW Köln , however

The outlook: challenges and opportunities

Despite gradual relaxation in the personnel area, the situation remains tense, especially in the areas of system catering and the catering service, where the lack of qualified staff is considerable. While the number of employees subject to social security is increasing again since 2022, the shortage of skilled workers remains a constant companion. In the first half of 2024, restaurants had to accept a decline in sales of almost eleven percent compared to the previous year - an indication that recovery is slower than hoped

As the discussion about returning to the reduced VAT and more flexible working time models shows, the decisions of politics are crucial for the future stability of the industry. There is also a need to catch up compared to neighboring countries that pursue innovative approaches. In order not only to survive, but also to remain sustainable, gastronomy in Germany must quickly react to changed customer expectations that are increasingly demanding quality, regionality and sustainability.

Nevertheless, there are bright spots: Initiatives such as those of residents in Herdorf who want to preserve an old village pub through voluntary work, show that the connection to the community and creative solutions can be brought to life. This could be an interesting model for other regions and companies to address the challenges and to address a new generation of specialists.