A years-long decline has been unfolding in Hungary’s hospitality industry, with an increasing number of pubs, restaurants and pastry shops shutting down across the country. Many venues were unable to reopen after the pandemic, while rising costs and falling customer numbers have continued to place businesses under severe pressure.
According to a recent analysis by Portfolio, more than 14,000 commercial hospitality venues have disappeared in Hungary since 2010. Last year, only around 35,000 operating establishments remained on record, compared to nearly 50,000 previously.
Even well-known Budapest venues are closing
In recent years, several well-known hospitality venues have closed their doors both in Budapest and in the countryside. The Szegedi Halászcsárda on Belgrád Rakpart shut down after 15 years in operation, while other familiar names such as the Most Bisztró, Lehel Íze, Keksz, Roncsbár and Mika Tivadar Kert have also closed. Their cases suggest that the wave of closures is no longer affecting only smaller or lesser-known establishments.
According to data from the Hungarian Central Statistical Office (KSH), the number of commercial hospitality venues in Budapest fell by a quarter between 2013 and 2024, while nationwide figures dropped from more than 50,000 to around 36,000. The most dramatic decline came during the Covid-19 pandemic, but many businesses were unable to recover afterwards.
Industry insiders increasingly report that customers are spending less than before.
“The number of restaurant-goers with purchasing power is declining. We have often seen lately that customers order one dish fewer. There are fewer guests, and the average spending basket is smaller,” Harmath Csaba, professional director of the Gault&Millau restaurant guide, told G7.
According to Rudolf Semsei, vice-president of the Hungarian Hospitality Industry Association, many guests now order one course less and are also less likely to choose more expensive drinks. The sharpest decline can be seen among bars and pubs. Statistics show that while more than 20,000 drinking establishments operated in Hungary in 2010, their number has now fallen below 10,000.
Restaurants and pastry shops are also struggling
Although pubs have seen the most visible decline, restaurants and pastry shops have felt the changes too. The number of restaurants remained relatively stable before the COVID pandemic, but a faster wave of closures began afterwards.
Several factors lie behind the downturn, including:
- the growing popularity of online food delivery,
- fewer people dining in traditional restaurants,
- severe labour shortages,
- sharply rising energy and ingredient costs.
After the pandemic, many businesses and restaurants went bankrupt, with smaller countryside establishments particularly badly affected. In many towns and villages, declining and ageing populations have also significantly reduced the customer base.
For pastry shops, soaring energy and ingredient prices have been especially damaging. These businesses require extensive refrigeration and baking, while the cost of dairy products, chocolate and other ingredients has risen considerably in recent years. At the same time, traditional confectioneries are increasingly being replaced by modern bakery-café chains.
The spread of online food delivery platforms has also transformed the market. New consumer habits are emerging, with more people preferring to eat at home or order takeaway meals.
Can government support halt the decline?
In January 2026, the previous government announced a six-point action plan worth around HUF 100 billion to support restaurants. Initially, the programme mainly targeted full-service restaurants with hot kitchens, while party shops and cafés were excluded. However, the package was extended to confectioneries in February.
The measures included tax cuts, preferential loans and administrative relief aimed at helping hospitality businesses cope with rising operating costs and wage increases.
The state of the hospitality sector is likely to remain a major challenge for the new government as well. Following the April elections, the Hungarian Hospitality Industry Association stated that the sector expects a stable and predictable business environment and offered professional cooperation to the cabinet led by the Tisza Party.
Current figures, however, suggest that the problems facing the hospitality industry are unlikely to be resolved quickly. It remains unclear how the new government intends to continue the support programmes introduced by the previous administration. Industry organisations nevertheless hope that assistance for the sector will remain on the political agenda, as many businesses continue to face serious difficulties.
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