VfGH: Merely having a university degree is not enough to open a pub

Until now, according to the hospitality regulations, anyone with a university degree might open a restaurant. That should be the end of it for now. The Constitutional Court sees the provision as a violation of the principle of equality – because in all other cases proof of relevant specialist knowledge is required, according to the decision from the end of February.

Anyone who can show “certificates of successful completion of a field of study at a university or a university course leading to the award of an internationally accepted master’s degree” is qualified to run a hospitality business, according to the provision, which the Constitutional Court has now repealed as illegal. So with a degree in journalism you might just as easily open a restaurant as with a degree in biology or law. Further detail from the hospitality regulations: If the degree comes from a technical college and not a university, you must have completed training focused on tourism.

Constitutional Court examined the case

The original case concerned a company that initially ran a so-called independent hospitality business, for which no qualifications are required. Only “simple food”, non-alcoholic drinks and beer may be sold at a maximum of eight tables. This includes, for example, a sausage stand. In June 2022, the managing director wanted to expand the business into a “coffee restaurant” and registered the project with the magistrate in Vienna. As proof of qualifications, he referred to his certificates from the fields of business administration and commercial law, although these did not prove successful completion of a field of study. The authority therefore considered that the proof of competence was not provided.

The managing director failed in his appeal to the Vienna Administrative Court. His case ultimately ended up at the Constitutional Court. The VfGH initiated an examination because it had doubts as to whether a university degree might actually prove the technical and commercial qualifications for a hospitality business. After all, the certificate of qualification should serve to “ensure a certain standard of the trade’s services in the sense of consumer protection,” it said in the examination decision. Rather, it is in the public interest to ensure a certain standard of professional performance through well-founded professional training and sufficient practical work. These concerns “might not be dispelled” in the regulation review process, the decision states.

The Neos demand that the government use the now necessary amendment for a “fundamental liberalization of the trade regulations”. “Anyone and everyone should be able to open an inn,” says Neos business spokesman Gerald Loacker. “Of course, the work and health standards must be adhered to, but no certificate of competency is required.” The opposition party had already submitted a corresponding application to change the trade regulations in May 2023.

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