Dozens of Hungarian buffets and restaurants may close down soon

Starting from 1 July, smaller restaurants, buffets, and Balaton lángos sellers will have to connect their businesses to the National Tourism Data Reporting Center (NTAK). This led to a wave of concern through the predominantly micro and small business dominated part of the hospitality sector.

The smallest businesses are afraid that the deadline will force many of the hospitality providers to shut down. This concerns those who are unable to fulfil the immediate reporting obligation regarding their sales while trying go serve longs lines of customers, writes Napi.hu.

Digital transformation

According to the Hungarian Tourism Agency (MTÜ), current regulations require registration of  hospitality businesses in the National Tourism Data Reporting Center. This platform enables real-time visibility of anonymous traffic statistics for all dining establishments in the country.

Mandatory data reporting for hospitality providers and attractions will begin on July 1, 2023. From that point on, businesses can only sell their products in daily operations using software compatible with NTAK reporting. To facilitate the digital transition from traditional paper-based statistical reporting, MTÜ recommends the free software “Vendégem”, which small business owners can obtain without personal assistance.

Smaller restaurants feel threatened

The President of the Hungarian Association of Caterers, László Kovács pointed out that entrepreneurs perceive the current digital catch-up as a burden.  The reason for this being that the current recessionary conditions largely affected the hospitality sector. Furthermore, the sector is divided because larger restaurants are in a different situation. These establishments already employ computer systems to track current sales and inventory, so they won’t be affected that much.

Currently there are around 18,000 small-scale businesses in Hungary employing one to ten people. These small-capital, vulnerable micro-businesses form the majority in the sector. This critical group typically includes small buffets, lángos vendors, fish fryers, or small family-run restaurants. Such establishments still generally rely on online cash registers without more substantial computer systems for internal record-keeping, and so they feel threatened by the change.

No more delays

Kovács emphasised that it is unlikely for lawmakers to grant another extension for the implementation of the data reporting system. They have already rescheduled it twice before. The most recent postponement was in January of this year, pushing the launch date to 1st July. They now aim to ensure that the ongoing testing period is followed by a learning period.

“We kindly request the decision-makers, the owner of NTAK, and the authorities to implement a six-month grace period starting from July. During this period, although the obligation for data reporting is in effect, businesses that fail to comply or provide incomplete information will not be penalised. Furthermore, we ask for a more detailed and effective informational campaign to accompany the implementation and the initial months in the hospitality industry,”

pleaded Kovács.