Outrageous or reasonable? Croissants in Budapest cost more than in the best Parisian bakeries
A recent comparison of the prices of premium bakery goods – particularly croissants – in Budapest and Paris has sparked a heated discussion online. It appears that croissants in Budapest are more expensive than those found in the finest Parisian bakeries. Some argue that this is understandable due to various underlying factors.
Budapest vs Paris
Back in June, Telex wrote an article about premium bakery goods in Budapest and how profitable they are. The article inspired Hungarian writer György Dragomán to share his experiences on Facebook regarding the pricing of filled croissants in Budapest and Paris. He wrote: “I’m reading Vilmos Weiler’s article on telex, about whether croissants are expensive in super-bakeries in Pest. The last time I saw a 2,100 forint pistachio on Rákóczi Square, I remembered that I recently had the pleasure of an excellent pistachio matcha at the Chez Meunier bakery in Paris, which was awarded the best French croissant in 2023. It cost 4.50 euros.
I paid by card, I just checked the receipt and the bank charged 1,830 forints from my account. Pierre Hermé’s world champion “Ispahan” (raspberry-rose-lychee cream) croissant costs the same, and in the Parisian croissant department, it is pretty difficult to find anything more expensive. So we’ve not only caught up with Paris, we’ve left it behind. As far as the prices of top-quality pastries are concerned”.
Why are croissants in Budapest so expensive?
Telex has reached out to numerous premium bakery owners in Budapest to uncover the reasons behind the surprisingly high prices of croissants in Budapest. In conclusion, the high cost of croissants in Budapest’s quality bakeries can be attributed to several factors. Firstly, the nascent premium bakery industry in the city lacks established, cost-effective supply chains. Secondly, low demand acts as a barrier to efficient, high-turnover operations and mechanisation.
Moreover, business models that support the sale of products at minimal margins are still underdeveloped. The combination of limited domestic demand and a significant tourist presence encourages bakeries to focus on luxury goods rather than everyday products. Consequently, only a few bakeries manage to achieve good profits. However, as demand increases, these challenges are expected to diminish, leading to more efficient production, better supply chains and a shift towards meeting everyday needs. Additionally, when considering the price, the size of the pastry should also be taken into account. While people criticise the prices of croissants in Budapest, they have also noted that they are the largest in the Hungarian capital.
Baked goods in Hungary
In Hungary, it is quite common to buy fresh baked goods in supermarkets. There, you can find croissants at significantly lower prices than in premium Budapest bakeries, which cost around ten times less. While premium bakeries offer pastries made from quality ingredients and free from preservatives and additives, the demand for such products remains low in the Hungarian market at present. A bakery owner told Telex that with growing demand, prices would probably normalise in the future.
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Of course, Hungary having the World’s highest consumption tax (VAT/GST) has nothing to do with it! Thank you Mr Orban.
https://www.globalvatcompliance.com/globalvatnews/world-countries-vat-rates-2020/#:~:text=The%20highest%20standard%20VAT%20(Value,standard%20VAT%20rate%20of%2025%25.
Price is driven by consumers. If consumers are willing to pay, bakeries can be even charge 3000 forints.
A local resident would not pay this amount but tourist are able to pay this amount as they tend to come from richer countries and indulge themselves during a vacation trip. The problem is that a resident can hardly find any affordable service downtown as companies are targeting the tourists.
I ordered once through Wolt (before they became poop), because there were THREE croissants on the image, and 1000 HUF is outragous for a croissant. (And I frequent fine dining places. So I am used to some expensive places.) So I payed 3000 HUF, expecting 3 big croissants. One SMALL thing arrived more than two hours later, that was delicious, but half as delicious, barely filled, than the normal sized, handmade ones costing 600 HUF (at the time), in an Italian patisserie 5 MINUTES WALK AWAY at Astoria. So Italian, they barely speak English, let alone Hungarian. Everything made with quality ingredients, and two times as much filling than the tiny, pretentious 3000 HUF thing. I was flabbergasted. I am rather hopping on the metro ever since and make the trip to the superior Italian place, whatever bakery thing I want. I don’t bother with the bakery next to me either. A 30 minute detour for fair prices and fine dining quality? No brainer and it’s faster anyways than the ridiculous Wolt these days.