Restaurant prices skyrocket in Hungary: people eat less

Városliget Café & Restaurant 1895
Source: Facebook/Városliget Café & Restaurant 1895

A main dish costs HUF 5-7,000 (EUR 12.8-18) in a Hungarian restaurant, but that is too much for the average Hungarian. Therefore, eateries have fewer guests, and those who do eat out eat less.

According to portfolio.hu, inflation is lower, but people still do not have enough money to order 2 to 3 courses in a Hungarian restaurant. Instead, they have one. PM Viktor Orbán said in his annual State of the Nation speech that 2024 will be a better year for Hungarians because the economy will recover. That is good news, but real wages are still lower than last year.

László Kovács, the president of the association of the Hungarian caterers, said the prices of drinks and foods increased by 8.5-13% even though food price inflation was higher.

The good news for restaurant owners is that energy prices decreased to 2021 levels. Furthermore, many eateries could place solar panels on the roofs. Thus, they can save additional money on their energy bills. Zoltán Kőrössy, the founder and owner of Eventrend Groups, added that the energy crisis disappeared sooner than most people thought. And it was not a factor in reducing consumption.

Meanwhile, the inflation in Hungary reached a record high after 2022. For months, it was the highest in the European Union, resulting in masses of Hungarians doing their shopping in Slovakia, Romania, and even Austria. For example, the average food price inflation was above 60% in Hungary, but in some cases, like eggs or butter, it reached more than 100%.

Food price inflation halted

Apart from the war and the post-COVID demand rise, the main cause of that skyrocketing inflation was the government transfers before the 2022 general elections, reaching more than HUF 1,700 billion (EUR 4.38 billion). That generated immense demand and increased prices. From PM Orbán’s viewpoint, on the other hand, the strategy worked. He won his fourth consecutive supermajority against the united opposition in April 2022.

The price was inflation and the diminishing value of the wages. And that modified the budget of most families. As a result, people have less money to spend in restaurants.

According to index.hu, food prices are 20% lower in Poland and Romania. Based on the newest survey of the Hungarian National Bank, food prices are lower in five member states only. They said the price monitoring system reduced inflation, but the price caps increased it.

According to the Central Statistical Office, average inflation was at 4% in January, but that meant a 21% price rise in the case of tomato and 17% in the case of green pepper. The average food price inflation was 66% in just two years.

Based on index.hu, Hungarian food prices reached the Dutch price level, but Hungarian salaries are far from the average in the Netherlands.

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