Hungary’s restaurant industry faces another year of uncertainty

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A year ago, Hungary’s restaurant industry in the western region faced an unsettling trend: farewell messages. The wave of closures extended into the following year, raising doubts about the possibility of reopening.

Sopron’s culinary decline

Sopron, a historic city in the region, bore the initial brunt of this wave in 2022. The closures began in April with the renowned Puskás Restaurant, a 36-year-old favourite with an impressive garden and street terrace by the castle. Its popularity wasn’t limited to locals, as national and foreign celebrities, politicians and artists frequented it. However, other establishments like the Várkert Café & Restaurant and Graben Restaurant, along with several other Sopron spots, also had to close their doors. The closure of these restaurants has not only affected the local gastronomic scene but also signifies a downturn in tourism. Additionally, a search for real estate listings on the internet reveals a surprising number of results. In Sopron alone, there are 16 hospitality units for sale, including a choice of hotels, restaurants, buffets, and guesthouses as reported by Telex.

Győr’s gastronomic impact

This wave of closures also affected Győr and its surroundings. Notably, the Arrabona Food Bar saw its doors shut, sparking an outpouring of support from the community. The establishment was famous for its mushroom sandwiches, and the recipe, known as the “real arrabonas,” gained popularity even after the restaurant’s closure. However, it wasn’t just Arrabona Food Bar; other notable closures like Benedetto Confectionery in Győr, after serving customers for 37 years, marked the end of an era. The closure of these iconic places affected not only the local gastronomic scene but also the sentimental ties that people had to these establishments. For the time being, optimism is the only driving force for businesses.

The challenge of reopening

After the initial closure wave in January, the region didn’t witness more old, well-known businesses shutting down. However, new openings by old owners or tenants have been scarce. The general pattern was to see new tenants taking over in 2023. Pizzerias and trendy food bars replaced some old restaurants, but their long-term success remains uncertain. The Erzsébet Liget Restaurant in Győr, initially facing temporary closure, transformed into a gluten-free bakery and restaurant under a new tenant. The journey has been challenging for many, but business owners continue to adapt to the evolving restaurant landscape. Csaba Horváth, a gastronomy expert, believes that entrepreneurs are working hard to make the best of the situation. Nevertheless, no one today is where they were before the crisis.

This is the time when everyone thinks twice about what they spend their money on. […] We have concluded that we need to reduce the supply, cut staff now, and try to get through another spring-to-autumn season.

commented Horváth.

“This is the time when everyone thinks twice about what they spend their money on. […] We have concluded that we need to reduce the supply, cut staff now, and try to get through another spring-to-autumn season,” commented Horváth.

The lingering effects of closure

As we reported earlier this year, Hungarian restaurants still struggle to survive. Approaching another winter season, entrepreneurs in the region are bracing for the challenges that lie ahead. While there’s a glimmer of optimism among newcomers, it’s clear that the path to recovery won’t be easy. With the rising costs of energy and goods, staff shortages and ever-evolving market conditions, it’s a challenging environment. The closure of well-known restaurants had a profound impact on the local gastronomy scene. Chefs were lured away by better opportunities, and some workers even left for Austria. Corporate events were seen as a potential lifeline, but they couldn’t make up for the losses. Business owners face significant challenges, but they remain resilient and hopeful, determined to adapt to the ever-changing landscape of the restaurant industry.

In conclusion, the restaurant closures in Hungary’s western region have left a lasting impact on the culinary scene, and the road to recovery still hangs in the balance for many business owners.

Source: Telex

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