More than half of restaurants may close in Hungary by early 2023

Illustration. Photo: facebook.com/NewYorkCafeBudapest

According to a new survey, 70 percent of Hungarians save on food and energy at home, 55 percent save on entertainment and 60 percent no longer go out to restaurants. This, coupled with a steady rise in prices, could lead to the closure of around half of Hungary’s restaurants by the beginning of next year.

People save money on everything they can

Most people save money on food and cultural and entertainment programmes. In the hospitality sector, the most severe downturn is expected in January, with experts fearing mass restaurant closures, according to atv.hu. More than 70 percent of the population save money on food and energy at home, according to a survey by Groupama Insurance. 60 percent of respondents said they no longer go out to restaurants, while 55 percent have given up cultural programmes or other forms of entertainment.

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Half of the catering establishments might close

According to the president of the catering industry association, there are some catering establishments that are experiencing a 10-20 percent drop in turnover. However, the significant drop will be seen in 1-2 months.

“This year, we can perhaps not expect such a significant drop in turnover, as everyone wants to celebrate this year in peace and quiet, and especially the end of the year in this way, and the major closures and the drop in turnover can be expected from January, based on the opinions of the professional circles”,

said László Kovács, president of the Hungarian Hospitality Industry Association.

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People are postponing renovating their homes

According to him, more than 50 percent of restaurants could close by early 2023. And the Secretary General of the National Retail Federation told atv.hu that purchases of industrial goods have also fallen. The Groupama survey also showed that some people are postponing their home renovation. According to the expert, this hurts the second-hand housing market the most.

This will result in houses in poorer condition

“The more people postpone renovating their homes, the worse the condition of the properties will be, and in the second-hand housing market we are getting properties in worse condition for almost the same money,” said László Balogh, economic expert at ingatlan.com. László Balogh added that although postponing an energy renovation may seem like an efficient way to save money in the short term, modernisation can significantly reduce monthly utility bills.

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