The luxury dining scene in Berlin is experiencing a downturn, with five high-end restaurants closing in the past year. Chef Sebastian Frank of Horváth, which holds two Michelin stars, believes that the market has contracted after a period of growth from 2010 to 2020. The German hotel and restaurant association, DEHOGA, warns that one in ten restaurants in Germany closed in 2023 due to inflation and the increase in VAT from 7% to 19% following the pandemic.
Gerrit Buchhorn, the managing director, explains that operating costs have significantly changed due to COVID-19 and global conflicts, impacting prices and customers' willingness to pay. Furthermore, the European Football Championship in 2024 may also lead to further losses for the industry.
Critics attribute the crisis to the German government's financial policies, including the fluctuating restaurant VAT. They call for a more restrictive financial policy and a reconsideration of VAT reduction to support the struggling fine dining establishments.
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