The Troubling Times of Belgium’s Restaurant Scene
Ah, France! The land of baguettes, bonjour, and plates that look like they might as well be modern art sculptures. I mean, twelve euros for a starter-main or main-dessert duo? That’s less than my last therapy session after realizing my own fridge is a Cordon Bleu disaster zone. Meanwhile, in Belgium, it seems like dining out is less ‘Michelin-star’ and more ‘why bother?’
Since the illustrious month of June 2024, a staggering 208 bankruptcies have sprouted in the Horeca (that’s ‘Hotel, Restaurant, and Café’ for you non-initiates) sector. And to top it off, half of Belgians are dining out less than they were five years ago—mainly due to budget constraints. And honestly, can you blame them? When your average meal bill hovers around €40, you start to reconsider the last time you had a takeout curry. Spoiler alert: it was probably too soon!
Margins too fat?
You might think that restaurants in Belgium are raking in the dough with skinny margins. But think again. In 2023 alone, over 10,000 establishments threw in the towel—an 11% increase over the year before! Clearly, they’re not counting their hours; they’re counting their pennies—and those are disappearing faster than a free beer at a bar.
And for those who dream of sipping a cheap sangria on a Spanish beach, let’s be real. Comparing prices in different countries is like comparing apples and… well, pears. In Belgium, a delectable dish served hot and fresh is slapped with a 12% VAT. In nearby France? Just a mere 10%. It’s like Belgium is the overzealous parent who insists on extra toppings at the ice cream shop while kids are just trying to enjoy their scoop guilt-free!
Less Undeclared Work
Let’s not forget that the pandemic didn’t just bring us sourdough starters and newfound hobbies; it obliterated many restaurant cash flows faster than a bad joke at a comedy club! They say laughter is the best medicine, but I don’t think it covers the rising costs of energy and ingredients. And speaking of medicine, that delightful little black box mandated for restaurants? It’s like an overbearing parent keeping tabs on their teenager’s every move, making undeclared work nearly impossible.
Future Government Expected Around the Corner
But wait! There’s a glimmer of hope peeking out from this kitchen disaster. Politicians are huddling and negotiating measures such as tax exemptions for overtime. Sounds great, right? But don’t hold your breath; the Horeca federations are demanding six measures, including zero employer contributions and a nice, fat €400 increase in net salary. Because why just scrape by when you can *thrive* while trying to serve that plate of spaghetti?
So here’s to all the restaurant owners, workers, and patrons navigating this culinary calamity. May your menus be filled with joy, and your bills be surprisingly light—just like that lovely 12-euro starter-main or main-dessert deal our neighbors to the south seem to enjoy!
In France, many restaurants (outside Paris) offer a starter-main course or a main course-dessert for the attractive price of twelve euros. Unthinkable for us.
Since June 2024, there have been 208 bankruptcies in the Horeca sector. ©Belga Image
Half of Belgians go to restaurants less than five years ago. Lack of budget for half of those questioned. This is what a survey carried out among 4,000 Belgians reveals. Not surprising when you know that we spend on average €40 per meal in a restaurant. But what is behind these constantly rising prices?
Margins too fat?
Based on the number of restaurants closing, the answer is no. In 2023, more than 10,000 establishments will have been declared bankrupt. That is 11% more than the previous year. And many restaurateurs do not count their hours, without being able to earn a decent salary.
It is not a question of comparing apples and pears. It makes sense that a sandwich costs less in Spain, where salaries are lower than ours. That said, it seems that the state is particularly greedy. For example, a dish served on site in Belgium will be subject to 12% VAT compared to 10% in France. Moreover, Belgium is the third country with the highest hourly labor cost in the European Union.
Less undeclared work
First, it was Covid which wreaked havoc. Despite state aid, many restaurateurs have emptied their cash flow to save their establishments, sometimes in vain. Added to these forced closures is inflation which affects raw materials, energy, rents and salaries.
And there is no question of relying on undeclared work. In any case, it is much more complicated to use it since the obligation of the black box, a small box coupled to the cash register which allows all commercial activities to be controlled and to verify that staff are properly declared.
Future government expected around the corner
However, many measures have been taken, such as tax exemption for part of overtime or even increasing student job hours. But they are not enough, according to the Horeca federations, which are demanding six measures. Among them, zero employer contributions on all minimum salaries, an increase in net salary of 400 euros minimum, or even an increase in the number of tax-exempt overtime hours.
In the shadows, representatives of the sector, employers and unions, as well as potential members of the future government, are negotiating…
