More and more restaurant companies fear they will have to close their doors within a year, according to research by the Central Bureau of Statistics. According to the entrepreneurs, the high costs of energy and raw materials are mainly responsible for the uncertainty.
in May, 59% of restaurant entrepreneurs thought they could survive, but that percentage dropped to just 52% in November. This makes hospitality companies the most pessimistic about their future of all industries. The sector also shows the sharpest drop in confidence of all sectors surveyed by Statistics Netherlands.
BNR’s in-house economist, Han de Jong, sees that energy costs weigh more heavily on entrepreneurs. ‘No less than a third of all hospitality entrepreneurs say those costs play a decisive role in their future prospects. In all other sectors this is an average of 20%.’
Difficult period
De Jong also describes the challenging times hospitality entrepreneurs face. ‘First they had to close during the pandemic. Then they were allowed to reopen, but they didn’t have enough staff to fully open, which still happens in many places. They have now started refunding taxes, which may be deferred during the corona period. And finally, they now have to contend with significantly higher energy prices. That sector is being hit after hit, after hit.
Of all companies, 71% think they can last at least another year under current economic conditions, 8% assume a maximum of three months to a year. These percentages are at the level they were in May, when Statistics Netherlands conducted a similar survey. Only in the information and communication sector has confidence in survival increased since then.
High energy costs
More expensive energy prices and higher raw material costs are the top livelihood concerns for 22% of companies. Entrepreneurs who think they can’t keep it going for more than a year, in particular, indicate that rising costs are worrying them.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
