40-50% of Hungarian restaurants will fail and close
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Up to half of the Hungarian restaurants could go out of business in the near future. According to Zoltán Barabás, there is a real chance that 40-50% of restaurants will close.
As we can read in dehir.hu’s article, according to press reports, market players expect a price increase of 15-20% for restaurants, but some estimates suggest that even a 50% increase is possible.
Zoltán Barabás, a restaurant owner in Debrecen and general vice-president of the Hungarian National Gastronomic Association, said on Debrecen Television’s Esti Közelkép programme,
“Restaurants are also affected by labour shortages, rising wages, rising raw material prices and rising energy costs.”
On top of that, as Barabás added, restaurant workers leaving their workplaces is also a big problem. However, now, workers in rural restaurants no longer go abroad, but are being lured to Budapest and the Transdanubian region.
As it was mentioned in the TV-programme, a good chef now asks for double or even triple his pre-pandemic salary. According to the expert, salary demands are becoming unrealistic and are no longer affordable for restaurants.
He added that it is understandable that workers in the catering industry are asking for pay rise, as the expectations in the industry are extremely high and workers should be paid accordingly.
Conservative estimate.
Devastating – Sad, but times we live and the ZENITH of the impact – this on-going Novel Virus and Strains – the ramifications are distanced from being witnessed and seen – the aftermarth of this – “The biggest challenge to mankind in the past century”.
The “Softness” in the Financial & Economic “Underbelly” of Hungary – the continual need to borrow funding internationally, in large part, bought on – by the Economic Union – the NASTY relationship Hungary & the EU – that see’s – on-going availability of Funding to Hungary by the EU – in turmoil – and is a major reason why – the Economy of Hungary – is under Extreme Pressure.
Hungary – needs to come back into line in its European Union Membership which in the past week, displayed in a ruling that FINANCILLY – “scared & damaged” Hungary – handed down by the Court of Justic of the European Union, that AGAIN sent LOUD messages to Hungary & Poland – its the Laws of the European Union and if they are not adhered to – respected, followed, practiced, and implimented – under Democracy – the door is open Hungary – to leave and go it alone.
Hungary – the state of the “Weakening Economy” and the EU relationship – challenging times, not helped by rising Debt of a Government that continues to Internationally BORROW funding.
Government Debt – who pays?
Tax payers – citizens of Hungary pay, and that is FACT.