Restaurant closures predicted to treble « Euro Weekly News

Restaurant closures predicted to treble

Restaurant Closures Predicted to Treble. A restaurant with only a small number of tables occupied. Euro Weekly News

A restaurant with only a small number of tables occupied. Photo Credit, EWN

Restaurant closures are predicted to treble by the end of the year, causing concern within the industry.

In a good year, it´s normal to have a fair few restaurants close down, according to president of the CAEB Restaurants´ Association in Mallorca, Juanmi Ferrer. He quotes 2023 as an example, in which 28 of the 186 restaurants that closed down permanently shut their doors for the last time due to the proprietors´ retirement. However, the president expressed his concern that the number of closures by the end of 2024 could well more than treble that of the previous year, and the association is investigating the reasons why.

Ferrer says that statistically, profits received by restaurants are at an all time low, in many cases having dropped from around 20% down to a mere 6-8%, and that as long as restaurants continue to operate in the red at certain times of year, closures will continue to increase.

According to Ferrer, the cost of living in Mallorca is a strong factor in the decline of the restaurant industry. He explains that on average, things in Mallorca are around 12% more costly than in the rest of Spain, in particular rent (which he quotes as being up to 400% more expensive on the island in comparison to the mainland), which consequently impacts on staff resources, with fewer EU citizens seeking work in Mallorca due to the extraordinarily high cost of living.

With food prices, electricity, and council taxes on the rise, it´s no wonder that as much as restaurateurs are struggling, the general public, aka, the client, no longer has the financial capacity to eat out on a regular basis. Supply verses demand is a domino effect.

Written by

Donna Leanne Bradley-Brown

Originally from the U.K., Donna Bradley-Brown first moved to Mallorca in 2002. She immediately fell in love with the island and knew it was destined to be her home. Donna is particularly passionate about animals, art and the environment. If you have a news story she would love to hear from you at editorial@euroweeklynews.com [Photo Credit @caroixyz]

Comments


    • D Bath

      15 October 2024 • 11:36

      I feel for any business that fails under the best of intentions and hard work. That said, as someone who traveled extensively for over 30 years and was blessed to have dined at it some of the finest restaurants in the world, I believe this is just a culling of the herd. There are too many restaurants.

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