food

Price cap in Hungary to be abolished on 1 August

The Hungarian government has extended the price cap in Hungary by one month, after which it will be lifted.

In August, inflation could fall significantly to around 15 percent, and it is realistic to expect what was previously promised to be single-digit inflation next year.

“New tools are being introduced. These include an online price monitoring system, compulsory promotions and the possibility to use the SZÉP card for cold food. That’s why the food price freeze will end on 1 August”, Gergely Gulyás, the PM’s Chief of Staff, said.

However, the mandatory promotion rate for shops will be raised from 10 to 15 percent. Even after the price freeze is lifted, there will be a brake on the products concerned, which will have to be sold at 15 percent cheaper than the supplier price, and this will also be checked.

The price cap has served its purpose in bringing down inflation, Gulyás said.

UPDATE

Meanwhile, Gergely Gulyás said the government had reviewed the family benefit system and concluded that circumstances had changed fundamentally in the recent period, mainly due to the war in Ukraine, the related sanctions and inflation.

Concerning the prenatal baby support loans, Gulyás said the government wanted it to encourage women to have children as early as possible. Accordingly, from Jan. 1, 2024, only couples where the wife is under 30 will be eligible for the subsidy, he said. He added however that a transitional period will be introduced between January 2024 and Jan. 1, 2025 when women between the age of 30 and 40 will be eligible for it. The maximum sum of the loan will be increased to HUF 11 million (EUR 29,700) from the current 10 million, Gulyás said.

Meanwhile, he said the rules for the village CSOK programme will remain in place, with the subsidy being increased by 50 percent “or even higher in certain cases”.

However, CSOK will no longer be available in Hungarian cities, and a new subsidy scheme will be devised for towns with populations over 5,000, Gulyás said, noting a steep rise in home prices in Budapest and major cities which has led to a significant drop in CSOK applications.

Gulyás said CSOK was most popular in smaller places where the subsidy and the recipient’s co-payment was sufficient to buy a property, while in larger cities couples needed to take out a bank loan to complete the purchase price. Since banks have “practically stopped providing loans” as customers were discouraged by high interest rates, the number of CSOK applicants is also dwindling, he said.

The village CSOK continues to be available for new construction, buying a second-hand home or for renovation, and applicants will enjoy a VAT benefit below HUF 5 million, Gulyás said.

Concerning the new changes, he said the subsidy amount to build or buy a house would increase from HUF 600,000 to one million for one child, from HUF 2.6 million to 4 million for two children and from 10 million to HUF 15 million for 3 children.

For renovation, the subsidy will increase from HUF 300,000 to 500,000 for one child, from HUF 1.3 million to 2 million for two children, and from 5 million forints to 7.5 million for three children, Gulyás said.

June 22, 2023

Food price caps in Hungary may be extended, here are the details

The Hungarian government’s food price caps are currently in force until 30 June. However, there are reports that there will still be special offers on basic foodstuffs in July.

Food price caps may remain

According to Index, the Hungarian government is extending the food price freeze. Thus, from 1 July, we will still be able to buy basic foodstuffs at a lower price.

Gergely Gulyás, PM’s chief of staff, said at Monday’s cabinet meeting that a decision on the issue could be taken at the next cabinet meeting.

Many people thought that the introduction of compulsory in-store promotions and the online price monitoring system together could trigger a food price freeze. Price freezes are likely to remain because, although inflation has fallen according to the Central Statistical Office (KSH), it is still high, especially in the case of food.

For example, confectionery flour was 59.6 percent more expensive than in May last year, but bread and dairy products were up 52.7 percent and 51.3 percent respectively.

How long can it be in force?

The more conservative thinkers say that the price cap will only be in place for an extra month or two, but could be as long as six months, which would mean that the price caps remain in place until the end of the year.

According to official communication, the aim of the Hungarian government is to achieve single-digit inflation. Accordingly, the price controls may remain in place from 1 July. There will still be cheaper access to granulated sugar, wheat flour, refined sunflower oil, pork legs, chicken breast and cow’s milk with a fat content of 2.8 percent. You can also buy chicken eggs and table potatoes at fixed prices.

June 21, 2023

Beloved Hungarian restaurant in Canada announces closure

Country Style, a beloved Hungarian restaurant in Toronto, is set to close its doors for good on 1 August. The announcement led to an outpouring of emotions from customers, many of whom have been regulars for years.

The closure marks the end of an era for Hungarian cuisine in Toronto, known for its homemade-style dishes like schnitzels, cabbage rolls and goulash, writes CBC.

Long history

The restaurant has been a fixture in the Annex neighbourhood for 62 years. It was one of the first Hungarian restaurants on Bloor Street and the last one remaining. After the Second World War, a significant number of Hungarian refugees arrived in Canada. Many of them settled in the Annex area, resulting in the emergence of numerous Hungarian restaurants.

Katalin Koltai acted as the owner of the restaurant for 23 years. She acknowledged the continued demand for their food but at the same time, revealed her desire to retire. She expressed gratitude for the loyal customers who have been coming to the restaurant with their families from various parts of Canada and even the United States.

Customers,who have been frequenting the restaurant for decades, were saddened by the news of its closure. One regular, Liz Addison recalled the restaurant’s popularity during her time as a student at the University of Toronto. She explicitly praised the affordability and deliciousness of the food, particularly the schnitzel. Many customers have built lasting memories at the establishment, with families growing over the years and multiple generations now enjoying the restaurant together.

End of an era

Koltai, who immigrated to Canada in 1971, initially worked at a bank before joining the restaurant as a waitress. Eventually, in 2000, she purchased the restaurant with the support of her family and has been managing it tirelessly ever since. However, after 23 years of running the restaurant, Koltai has decided it’s time to retire and prioritise her own desires. Her plan now is to travel back to Hungary to spend some time with her family.

Following the closure on 1 August, the restaurant space will be taken over by a Vietnamese restaurant. As the final remaining Hungarian restaurant on Bloor Street, the closure of Country Style Hungarian marks the end of an era for Hungarian cuisine enthusiasts in Toronto.

June 21, 2023

Hungarian restaurants struggle to survive: what does the future hold?

La Fabbrica Budapest restaurants open on Christmas

Due to high energy prices and the lack of tourists, Hungarian restaurants are still struggling to survive. Home delivery might show a growing tendency. People spend more money, not because of increased purchases but as a result of the crippling inflation eating into customers’ budgets. The restaurants’ monthly turnover appears to be hugely dependent on pay dates.

Fewer tourists, also felt in restaurants

As Portfolio has reported, Hungarian restaurants are experiencing a drop in sales. This would not be such a big issue, but customers are turning increasingly price-conscious due to inflation. For instance, people pick cheaper wines off the menu and order only two courses instead of three. According to Rudolf Semsei, restaurant owner and vice-president of the Hungarian Foodservice Trade Association, restaurants with terraces have an advantage during the summertime. The number of foreign customers is still significant, although some ethnicities have completely disappeared. Russian tourists are not present this season, and there has been a considerable decrease in Chinese visitors since the Covid pandemic.

Skyrocketing energy prices

Many restaurant owners signed 1-2 years of fixed-rate contracts with their energy providers at the end of last year, as they did not have any better option. Now, these business owners are testing new possible marketing strategies to stay afloat and attract customers. However, the best “marketing ploy” out there is still based on providing high-quality service and aiming for customer satisfaction. The market situation is still not very favourable for restaurant owners facing an energy price trap. The Hungarian Foodservice Trade Association is not aware of any restaurant where the utility company has reduced the rates despite the fixed contract.

Help is on its way for restaurants

The Hungarian Foodservice Trade Association has been seeking help from the Hungarian government. A possible solution would be to cut these businesses loose from the fixed-rate contracts trap. Márton Nagy, Minister for Economic Development, seems to agree with this solution. He said that the government is already working on reviewing the contracts with electricity traders and will intervene if necessary and reasonable. Márton Nagy also added that updates concerning the pressing matter will be announced this week.

Spiralling spending at the beginning of the month

According to the calculations of restaurant owners, raw material prices have risen 40% in a year. Last year, the average order basket value was HUF 4,500 (EUR 12), while now it has reached HUF 5,800 (EUR 15.5). This price increase is mostly an inflationary cost. Therefore, it is not a profit boost for restaurants or delivery services. Most restaurants are cautious about raising their prices, as they do not want to lose customers. Usually, there is a temporary spike in turnover between the 1st and the 10th day of every month, around the time of pay dates. Although, after the 10th, there is a steady decrease. At the beginning of the month, people also tend to splash out on more pricey meals, while in the last days, they go for cheaper options or daily menus.

Restaurants are not the only ones facing debilitating challenges. Hungarian baths are also experiencing falling foot traffic, which you can read about HERE.

June 20, 2023

Shocking: One day at Lake Balaton to cost EUR 135 for a family of four?

If you want to holiday at Lake Balaton this year, you’ll have to dig deep into your pocket. Those tourists who had a budget vacation in mind at the Hungarian sea are in for a rude awakening. The prices of foodstuff and beverages, parking fees and beach passes have increased significantly. One scoop of ice cream, for example, costs as much as HUF 550 (EUR 1.5), but business owners say they will most likely further raise their prices.

Due to inflation, basic necessities cost us more and more money. Pénzcentrum has reported that Hungarian families will have difficulty saving up for their holidays. A study made by Pénzcentrum also reveals that 60% of Hungarians will skip their summer vacation this year or opt for destinations cheaper than usual. Recent figures from the largest accommodation provider confirm this: the decline in domestic travel by local tourists is already striking. It might seem a good idea to book a one-day trip, but is it really worth it? The short answer is: no. A one-day getaway for a family of four might cost HUF 50,000 (EUR 135) without accommodation. Below, we’ll tell you in detail how this number adds up.

Travel expenses to Lake Balaton

First of all, you have to reach Lake Balaton in one way or another. Let’s see how much it costs to get there by car. According to the National Tax and Customs Administration, the average consumption for a car is 8 litres. If you set out from the capital for Balatonmáriafürdő, the furthest point of the southeastern shore, the total distance is 169 kilometres. Back and forth, an average car consumes about 26.5 litres. Roughly HUF 15,000 (EUR 40) would cover the expense of the journey. Of course, closer destinations are more affordable. For example, Balatonvilágos is only 95 kilometres. During a 190-kilometre round trip, an average family vehicle consumes 15.2 litres of petrol, which would cost around HUF 8,000 (EUR 22). You’ll be startled to learn that making the same journey by train would not only take more time but would cost more as well.

Cost of food

It’s easy to work up an appetite with all the fun activities during your holiday… Hungarians’ beloved deep-fried flatbread lángos, with sour cream and cheese, costs around HUF 1,900 (EUR 5). Fancy some ham on your lángos? Then you’ll end up paying HUF 2,400 (EUR 6.5), just for a beach snack. Obviously, there is an infinite variety of toppings and the prices change accordingly. Fewer toppings equal cheaper lángos and vice versa. Due to inflation, you can expect a 20-30 percent price increase in restaurants around Lake Balaton and countrywide. Ice cream is also getting pricier day by day. One scoop of this frozen delicacy is around HUF 550 (EUR 1.5). If all of you just take two scoops, that will amount to HUF 4,400 (EUR 11.75).

Balaton beach passes

Almost all locations offer free swimming spots, but the best beaches charge a fee. On average, the price of beach passes has doubled since 2021. Currently, they cost between HUF 1,000 (EUR 2.7) to HUF 2,000 (EUR 5.4). Children and pensioners might be eligible for discounted tickets.

One day for a family of four

Travel fees, on average, are around HUF 15,000 (EUR 40). The money spent on food will be approximately HUF 30,000 (EUR 80). Of course, this might depend on personal needs and preferences. Beach passes cost about HUF 4,000 (EUR 10,7). To conclude, one day for a family of four at Lake Balaton would cost roughly HUF 50,000 (EUR 135).

June 20, 2023

Hungary’s Cake competition comes to an end: who’s the winner?

The seventeenth edition of the “Hungary’s Cake” competition, organised by the Hungarian Confectionery Industry Association (Magyar Cukrász Ipartestület), recently concluded with six finalists selected in April. The finalists had to create their masterpieces in the presence of the jury at the craft association’s workshop.

The competition aims to showcase the creativity and talent of Hungarian pastry chefs. It invites confectioners from across the country to submit their cake creations, and a professional jury evaluates the entries based on various criteria such as taste, appearance, creativity, and practicality. The winning cake is crowned as the “Cake of the Year” and becomes a celebrated dessert available in confectioners’ shops throughout Hungary, writes 24.hu.

This year’s competition

The professional jury evaluated the creations through three rounds of assessment. The public will have the opportunity to taste the winning cake for the first time at the Street of Hungarian Flavours event on August 19-20. Subsequently, it will be available for purchase in numerous confectioners’ shops across the country.

According to the industry association’s Facebook page, in addition to the predefined criteria such as taste, flavor harmony, appearance, technology, practicality, creativity, texture, and cutting surface, the jury also assessed the contestants’ adherence to the workshop’s technological processes, professional use of tools, and handling of raw materials.

During the second round of judging, the contestants made modifications to their cakes based on the judges’ suggestions, further enhancing their masterpieces.

The finalists

The six finalists and their creations are as follows:

– BETYÁROS MÁLNA by Krisztián Füredi from Hysteria Confectionery, Tápiószecső

– CSERSZEGI FŰSZERES-MANDULÁS TORTA by Béla Németh from Sütibolt, Keszthely

– MANDULA KAJSZI by Ádám Sztaracsek from Jánoska Confectionery, Komárom

– MERENGŐ by Barbara Szabóné Tarján from Nonna Desszert Bar, Szada

– SPICCES FÜGE RESPEKTUS by Pál Lakatos from Levendula and Garden Confectionery, Szigetszentmiklós

– TIHANYI ECHO by Antipina Iuliia from Cakes & More by Garannikova, Budapest

The judges have already chosen which cake has won the competition. However, the official announcement of the winner is expected to take place during a press conference only in early August.

June 19, 2023

Top 5 breakfast and brunch places in Budapest that you MUST visit

If you are visiting Budapest, you might want to have breakfast or brunch in a unique environment. Who wouldn’t like that? Here’s our top 5 list of brunch places in Budapest. Make sure to visit at least one of them!

Törökméz

Törökméz is located in District II, on Rózsadomb (Rose Hill). This is the perfect location if you want to get away from the touristy sites and enjoy your morning meal without the hectic chaos of downtown. Once you climb up the hill, make sure to visit the tomb of Gül Baba as well! The monument dates back to Ottoman times and offers a breathtaking view.

Törökméz offers a great variety of dishes as well as coffee specialities. For breakfast, you can get shakshuka, eggs benedict and other tasty things. Vegan options are also available. During the day, you can choose from sandwiches. Törökméz also has a great local and craft beer selection.

Freyja – the croissant story

If you are looking for the perfect croissant or puff pastry, Freyja is the place for you! Freyja has a great selection of puff pastries and 27-layer croissants. You can find savoury and sweet treats too. The menu changes as they use seasonal fruits and flavours. There is a shop on the Pest side, as well as the Buda side.

Freyja brunch — Source: https://www.instagram.com/freyja_thecroissantstory/?hl=en

VAJ

Speaking of puff pastries… VAJ also offers a great selection of all kinds of puff pastries. In addition to that, you can choose from a great variety of sandwiches, toast, and coffee of course. The cakes here are almost too beautiful to eat. VAJ is located on the corner of Rákóczi Square so it is very easy to get there.

VAJ — Source: https://www.instagram.com/vajbirodalom/?hl=en

Szimply

Szimply offers a trendy variety of all-day-breakfast. On the menu, you can find avocado bagel, scrambled eggs, eggs benedict and Buddha bowl. Szimply has vegetarian, vegan, as well as gluten-free brunch options. The dishes served here are not only healthy and tasty, but aesthetic too. Szimply has a terrace so you can enjoy your meal in the sunshine. This restaurant is located in the heart of Budapest, in District V. Since it is located in the downtown area, Szimply tends to be too busy sometimes.

Bambi Café

If you want to have a historical and truly Hungarian experience, Bambi Café is the best place for you! Bambi Café has authentic 60’s furnishing that serves as a throwback to Communist-era Hungary. The selection might be more limited, but it gives a realistic representation of a typical Hungarian café. You can have two frankfurters with mustard, scrambled eggs with different kinds of Hungarian pastries. Are you on a budget? Don’t worry, Bambi Café has wallet-friendly prices!

Looking for astonishing cafés in Budapest? Check out our recommendations for historical cafés in Budapest HERE.

June 15, 2023

Food to get more expensive due to new regulation in Hungary

The new Extended Producer Responsibility (EPR) could lead to food prices rising in Hungary by up to 4 percent from July.

Extended Producer Responsibility to change the prices of products

The new Extended Producer Responsibility (EPR), a charge on packaging materials, could lead to food prices rising by up to 4 percent from July, Agrárszektor reports. The new burden is several times the previous product charge, totalling around 60 percent of the food industry’s 2021 profits. That is a cost increase of EUR 120 billion to the sector, which it will definitely try to pass on.

Under the extended producer responsibility (EPR) system, users of packaging materials must pay a concession company, MOHU MOL Hullgazdálkodási Zrt., a member of the Mol Group, for the amount used, the portal reports.

The question, according to the portal, is to what extent which operators can raise their transfer prices in view of the EPR. While there is no doubt that no processor is in a position to absorb such a large burden given the overall economic climate, it is expected that the more capital-strong processors with better bargaining power will have greater success in this regard.

It is expected that smaller players, food processors in the Hungarian SME sector, will be the ones who will not or only partially be able to incorporate the cost increase of packaging into their selling prices, Attila Vörös, executive director of the Association of Responsible Food Producers (FÉSZ), told the newsportal.

Huge price increases to come in the industry

According to the industry’s calculations so far, a few items illustrate well the scale of the burden. For example, the price of the well-known 720-millilitre jar, including lid and label, has been HUF 5 so far. From July, it will rise to HUF 30.

For different types of packaging materials, the future charges will be three and sometimes ten times higher than in the past. Generally speaking, for most materials, multipliers of five to six will soon be in place.

Given the current situation, the significant cost increase and the uncertainties, the industry wants the ministry to delay the introduction of the new system until a compromise can be reached in the talks between the industry and the ministry.

As we reported yesterday, a major supermarket chain just announced the price cut of 85 of their products. Read details HERE.

Featured image: illustration

June 14, 2023

Major supermarket chain makes a massive announcement for the summer in Hungary

Aldi Hungary has announced that it will now significantly cut the prices of 85, mainly refrigerated products by up to 45 percent. It will also continue to offer at least 80 special offers every week, the company said. Customers can immediately get these products at a lower price.

In their statement, they point out that 120 fresh food products will be permanently reduced in June. On top of that, a third of their permanent dairy range got cheaper since Monday, 12 June. They also point out that the supermarket chain will continue to offer at least “80 special offers every week to help Hungarian families shop at a lower price”, Index quotes the statement.

From yesterday, the prices of 85 products, mainly refrigerated, have been significantly reduced by up to 45 percent.

These discounts apply to chilled goods, mainly normal and a number of lactose-free dairy products. These include fresh, ESL and UHT dairy products with different fat content, sour cream, heavy cream, kefir, natural and fruit yoghurt, butter, cottage cheese and various cheeses.

They also say that, thanks to lower prices in the purchasing market, the company has already reduced the prices of more than 120 chilled food products by between 15 and 42 percent in the last four weeks. The products affected include dairy products, bakery products, cold cuts, sausages, hams, ready meals, packaged salads and coffee drinks. Within this, the supermarket chain has reduced prices on 33 percent of its permanent dairy range.

Some examples of price reductions with the discount rate and the consumer price are the following:

Hungarian (Kokárdás) UHT milk 1.5 percent, 1 litre – 30 percent, HUF 289
Milfina lactose-free UHT milk 1.5 percent, 1 litre – 16 percent, HUF 499
Hungarian (Kokárdás) UHT heavy cream 10 percent, 180 ml – 33 percent, HUF 319
Milfina cocoa milk standard/lactose-free, 1 litre – 28 percent, HUF 699
Milfina lactose-free natural yoghurt 3.6 percent, 250 gram – 40 percent, HUF 249
Milfina kefir 3.5 percent fat, 450 grams – 27 percent, 399 HUF
Hungarian (Kokárdás) natural yoghurt 3 percent, 850 gram – 20 percent, HUF 599
…and many more!

“We remain committed to low prices. In keeping with our earlier promise, we will reduce our prices as soon as we have the opportunity. In recent weeks, we have already reduced our prices for our best-selling bakery products, dairy products and cold cuts, thanks to easing inflation and lower purchase prices,” said Bernhard Haider, Country Managing Director of Aldi Hungary, about the price cuts.

As we reported yesterday, shopping in Hungary is changing significantly from July one. Cash withdrawal in shops and price monitoring will be concerned – read details HERE.

June 13, 2023

PHOTO – Do not buy this Hungarian sausage: it causes brain fever!

Hungary’s National Food Chain Safety Office (Nébih) recalled a popular Hungarian sausage product because it may cause brain fever (meningitis).

According to Ripost, a Hungarian tabloid, shops give back the price of the sausage even without an invoice. Baromfirudacska 1000 g was sold by the Aldi Magyarország Élelmiszer Bt. The supporter is the Merian Foods Élelmiszeripari Kft. The cause of recall is the possible presence of the listeria monocytogenes bacteria, Nébih told the Hungarian press yesterday.

The recall affects only products best before 12 June and under the registration number L1132.BB.3.4. You can take back the product to any of the Aldi stores and get its price back without an invoice. Aldi informed its customers about the recall on its official website.

Infected Hungarian sausage — Photo: Nébih

What is listeria monocytogenes?

Any food infected by this bacteria can cause listeriosis. In healthy persons, that does not cause any symptoms. But in the case of infants, pregnant women, people above 70 and persons having a weak immune system, the risk of developing a more serious illness is higher. The symptoms include fever, vomits, diarrhoea, and headaches. Complications may cause brain fever, sepsis and miscarriage. In 20-30 percent of the cases, the patient may die.

June 10, 2023

McDonald’s in danger? Brand new fast food chain could take Hungary by storm

95 percent of Hungarians want more variety in fast food instead of typical American meals, according to a survey. The survey on fast food habits shows that on average, we would not choose fast food more than once a week. The study was carried out by Pick&Drive, who recently opened their first restaurant on Móricz Zsigmond Square in Budapest.

Hungarians want more versatile fast food options

Hamburgers, chips and fries are what we choose most often at fast food restaurants. This representative survey found that more than 95 percent of people surveyed would prefer a more varied, traditional and healthier option for a quick meal, whether they go to a fast food restaurant or takeaway, Pénzcentrum reports.

“We conducted a representative survey to map fast food – and in particular drive through – habits. Based on the responses, we concluded that the vast majority, more than 95 percent, would prefer a more varied, traditional and healthy meal on the go or even to take away,” said Péter Kis, Managing Director of the company that conducted the survey.

“There were also over 90 percent who would not choose the typical fast food more than once a week if they had the option to ask for something else instead. Many also mentioned their desire for healthier food when asked,” added Péter Kis.

A new restaurant: Pick&Drive

The survey was carried out for a new “drive through” restaurant network by Pick&Drive, who have recently opened their first restaurant on Móricz Zsigmond Square in Budapest. “This is a Pick&Eat restaurant for now, meaning there is no drive-through yet, but we will soon open our first Pick&Drive restaurant in Csepel,” he added.

The new restaurant chain already offers a range of breakfast options, including French toast, egg dishes and sandwiches. The main menu has also been developed based on prior customer demand. Pick&Drive plans to franchise more restaurants soon, not only in Budapest but also nationwide.

Featured image: illustration (Pixabay)

June 9, 2023

Price cuts at Hungarian supermarket chain: dozens of products to be cheaper

Good news for shoppers: the Hungarian supermarket PENNY is permanently reducing the prices of a total of 80 dairy products in two phases. The discount will be up to 20 percent for some products. Figures show that shoppers are paying more and more attention to the promotions, so whichever retail chain can give the most for the least amount of money wins the so-called “price war”.

80 products to be permanently cheaper in the Hungarian supermarket

PENNY is reducing the prices of 80 dairy products in two phases. The supermarket chain informed Pénzcentrum that the discount can reach up to 20 percent for some products.

The supermarket chain first cut the prices of 40 of its dairy products on 4 June. Then, from 8 June, a further 40 milk-based products will be available at even lower prices.

The change will affect own-brand and supplier-branded dairy products from domestic suppliers. So, in addition to various milks, cheeses, yoghurts and butters, many products from the recently completely revamped Sissy product family will be available at lower prices, PENNY informed the news portal.

Even 20 percent discounts can be expected

The average discount for each category concerned is as follows:

milk up to 14 percent
cottage cheese products up to 11 percent
and cheeses up to 16 percent

Goods at permanently low prices are available in all 229 shops, PENNY informs. What is more, the discount can be as high as 20 percent from 8 June.

Demand for discounts grows

“Generally speaking, the recent economic difficulties have led to an increase in demand for discounted products. Shoppers have started to shop down (for example, choosing private label alternatives instead of branded products). Thus, the demand for higher value, premium products has decreased. It is obvious that consumer baskets have changed, and buyers are looking for cheaper alternatives for a certain type of product,” Géza Vincze, Purchasing Director, replied to Pénzcentrum’s inquiry.

PENNY aims to offer the best prices to customers

The expert added that when negotiating prices with suppliers, they always aim to get the best possible price for their customers. “We constantly monitor customer needs and consumer trends and tailor our range accordingly. We always think in terms of long-term cooperation with our partners, and we are constantly working with our suppliers to provide customers with competitive products”.

Mr Vincze also said that PENNY works closely with Hungarian suppliers and producers. As a result, it passes on the reduction in raw material prices to consumers.

Yesterday, we shared some good news from one of Hungary’s biggest retail chains, Lidl, as well: read about it HERE.

June 8, 2023

Don’t miss out on these historical coffeehouses when visiting Budapest

Who doesn’t like a fresh cup of coffee in the morning? We promise you that visiting one of these historical coffeehouses in Budapest will be a life-long experience.

The History of Coffeehouses

The tradition of going to coffeehouses is present in almost every European country. Just think of Italy, Austria, France or England… However, the tradition of drinking coffee comes from the Islamic world. The Turks introduced coffee in Hungary during the Ottoman wars (1521–1718). The first coffeehouse in Hungary opened in 1714. Cavesieder Blasius, also known as Balázs Kávéfőző, was selling coffee on the streets from a tray hanging from his neck. His business was not going too well though, so he decided to open his coffeehouse in Pest in 1714. Unfortunately, this coffeehouse does not operate anymore, but here are some astonishing cafes that you can still visit in Budapest:

New York Café

The New York Café is one of the most iconic coffeehouses in Budapest. It was designed by Alajos Hauszmann and it opened in 1894. In the beginning, the building functioned as an insurance company’s headquarters. In the 20th century, the café became an important meeting place for significant Hungarian writers and poets. The café has a great selection of traditional meals, as well as coffee specialities. You can choose from hot chocolates and classic coffees, and you can even try Hungarian coffee which has black sour cherry, pálinka, chilli and brown sugar. It is a combination of Hungarikums that you can learn more about HERE

New York coffeehouse — Photo: https://newyorkcafe.hu/en/

Café Gerbeaud

Café Gerbeaud was built in Gründerzeit style and was first opened in 1858 by Henrik Kugler. Later, a chocolate maker inherited the café that popularised Katzenzungen and Cherry Queen in Hungary. The posh atmosphere quickly gained the attention and appreciation of the upper classes. Among the famous guests were Franz Liszt and Empress Elizabeth of Austria. To this day, Café Gerbeaud has a great selection of meals, coffee, cake and chocolate specialities.

Gerbeaud coffeehouse — Photo: https://gerbeaud.hu/

Central Café

Central Café is located in Lipótváros, it was established in 1887 by Ullman Lajos Erényi. The coffeehouse was technologically advanced for its time, it had modern electrical lightning, a ventilation system and heating as well. Similarly to the other coffeehouses mentioned in the article, Central Café was a meeting point for the cultural elite and university students. It was a place for heated intellectual debates and discussion of ideas. The café has a wide range of food and drink specialities. In addition to that, Central Café also has a great selection of the finest champagnes.

June 7, 2023

Unbelievable prices: This is how much Hungarians’ favourite beach food costs now

One of the most popular beach foods is undoubtedly lángos, both among Hungarian and foreign tourists. Unfortunately, the price of it has skyrocketed in the past year. The cheese and cream lángos at the Dagály beach buffet costs HUF 2400 (EUR 6.47). That is 40 percent more expensive than this time a year ago. Of course, this does not come as a surprise: food prices in Hungary have risen by roughly the same amount in a single year.

Year after year, the Vakmajom Facebook page compares the Dagály’s lángos prices, especially the one with cheese and cream (because that’s the only one worth eating, Pénzcentrum adds). The prices rises between 2021 and 2022, and between 2022 and 2023 are staggering.

Here are the prices Vakmajom personally took pictures of in the past years:

As can be seen in the post, the price of one lángos with cheese and cream started at HUF 1100 (EUR 2.96) in 2020, that is, 3 years ago. Then, in 2021, the price had increased by 18 percent, to HUF 1300 (EUR 3.50). In 2022, it was already 31 percent more expensive than a year before, HUF 1700 (EUR 4.58). This year, the price increase is even more shocking: 41 percent, making the price of cheese&cream lángos HUF 2400 (EUR 6.46).

As this clearly shows, prices in beach bars are likely to continue to rise this summer, mainly due to rising raw material and energy costs and labour shortages, Pénzcentrum explains.

Oeconomus predicts that in 2023, the price of a plain lángos will be between HUF 900-1300 (EUR 2.42-3.50) on beaches.

Beach cafeteria operators cannot buy ingredients at official prices

At retail level, households can buy sugar, flour, cooking oil and milk at a fixed price (price capped prices). So, the average prices for these products have not changed significantly compared to April 2022. However, wholesale prices of these products have also increased considerably, which may also affect beach cafeteria operators.

Neither cheese nor sour cream is included in the price freeze. In fact, the latest figures show that the price of sour cream has risen by 75.3 percent and the price of cheese by 45.4 percent.

June 2, 2023

End of price inflation for groceries in Hungary?

Lild Aldi Food Groceries Products Store Shopping

From 1 June, mandatory promotions take effect in Hungary. Originally meant to help slow down inflation, this was thought to be a clever political move by the government, as grocery chains were already competing with each other through promotions as consumption started declining.

When the measure was announced, the government had figured that they would once again get some free advertising by requiring stores to display that customers owe the discounts to them. However, it seems that the chains have retaliated: they simply included the mandatory promotions among their own promotions. Now customers may even receive a greater discount than the prescribed 10 percent, but not from the government, but from the representatives of Aldi or Tesco, writes hvg.hu.

Current prices

Shopping in late May shows us two things. One is that the prices of non-price-controlled milk and dairy products have somewhat returned to normal levels. In the past months, it was not uncommon for the price of 1.5 percent UHT milk to be twice or even three times that of price-controlled milk. Now, the low-fat version is slowly but steadily showing a decrease in price. However, there is still an almost one-and-a-half times price difference.

As for pork, the price increase seems to have stopped. This is not that visible though, as pork chops, tenderloins, or spare ribs, which have all settled around HUF 2,500 (EUR 6,75), are not becoming significantly cheaper. Of course, the big question will be: what will happen when the price controls go away?

End of price controls?

According to statements from the government, the lifting of price controls (price caps) will primarily depend on how much inflation slows down. Analysts expect this to happen in July, and it is likely to be the case for food prices as well, whether with mandatory actions or without them.

Another thing we can be happy about is that we are slowly returning to the time when we don’t have to learn new prices every month. Apart from seasonal fruits and vegetables, you can buy almost all food items for the same price as a month ago.

Imaginary basket

Let’s visualise the price changes by imagining buying ingredients for a four course Sunday lunch for four people. To make this last month, we would have had to pay HUF 8,139 (EUR 22). Adjusted to current prices, we could make it just for EUR 8,118 (EUR 21,9) this time. In March, the final amount was still HUF 8,316 (EUR 22,4), but a year ago it was only HUF 6,889 (EUR 18,6). This means that the annual inflation is around 18 percent, even though half of the products fall under price-controlled categories.

If we exclude the price-controlled products from the basket, the annual price increase is 36 percent, but on a monthly basis, there is a nearly 3 percent decrease. This may not seem very strong, but it is actually a welcome change.

June 2, 2023

State-mandated sales are coming to Hungarian supermarkets, but is there a gimmick?

food store spar price inflation in hungary

On 1 June, state-mandated promotions will kick off in many Hungary supermarkets. The Hungarian government is citing the measure as a weapon in the fight against inflation, but will it really ease the burden on shoppers?

What does mandatory promotion mean?

The Hungarian government has previously tried to curb inflation through price caps, which are still in place for a number of staple foodstuffs. On top of this comes the new compulsory measure, which requires the price of a product within twenty specific product categories to be marked down by ten percent for a week. An important stipulation is that the devaluation must be compared to the lowest price applied in the previous month.

The government has defined twenty product categories:

Poultry meat
Pork, beef and other meat products
Fish, canned fish
Meat products
Milk, cream and substitutes
Yoghurt and other fermented goods
Other dairy products
Cheese
Butter, margarine and preparations thereof
Other fats and oils (vegetable and animal)
Bread
Pastry
Dried pasta, rice and other cereals
Flour, sugar, preserved flour and meal
Fresh vegetables
Fresh fruit
Fruit and vegetable juice
Prepared dishes, spices, condiments
Coffee, tea
Mineral waters and soft drinks.

What changes will be brought to Hungarian supermarkets?

Many people reckon that shops have always given special offers to customers, so nothing will change. According to a hvg.hu article, there will be no big differences compared to what we have seen so far. Government agencies will regularly monitor whether products are really labeled with discounted prices on supermarket shelves.

You may see the price of a previously discounted product drop even further, or you may see unprecedented discounts of up to 50-60 percent in some popular chains.

The regulation does not apply to all shops though. It is defined as applying to retailers whose main activity is “mixed retail trade in foodstuffs” and whose turnover exceeded HUF 1 billion (EUR 2,690,298.77) net in 2021.

Concessions were granted to small shops, which do not have to promote a particular product category if they have sold fewer than five products of that category on the day the regulation was launched.

The promotion runs from Thursday to Wednesday each week, and the regulation is in force until 30 September.

From the categories, the trader picks which product will be discounted. A product can be discounted for a maximum of two weeks. The government also requires that discounted products must be available at the time of opening.

Variable effect

Traders may have a problem if the margin is less than 10 percent for a product category as a whole.

Experts say the regulation will have no impact on inflation. If inflation drops, it is more likely to be attributed to other factors (favourable weather, falling energy prices, cheaper feed).

The new regulation in Hungary makes it also mandatory to inform shoppers by displaying visible banners of the discounts at the entrance of Hungarian supermarkets.

May 30, 2023

These are the 5 best country restaurants in Hungary

Hungary’s countryside boasts countless amazing restaurants. Wherever you go in the country, there’s sure to be no shortage of award-winning restaurants. We are now presenting to you the top 5 country restaurants in Hungary that you must not miss out on.

The settlements that are home to the TOP 5 Rural Restaurants and the Lovable Restaurant of the Year are Tata, Esztergom, Encs, Tura and Balatonszőlős.

The soaring success of Hungarian restaurants in the countryside has already been proven by last year’s publication of the Michelin Guide French restaurant guide, which featured a number of restaurants outside the capital, napi.hu reports.

Many of these restaurants are also included in the Audi Dining Guide’s TOP 10 Rural Restaurants, led by Platán Gourmet in Tata. Platán Gourmet was awarded two Michelin stars last year and was also named Restaurant of the Year 2023.

The Michelin-starred 42 Restaurant in Esztergom, and the Bib Gourmand award-winning Anyukám Mondta also made the guide.

The TOP 5 Restaurants

Platán Gourmet (Tata) – Restaurant of the Year 2023
42 Restaurant & Bar (Esztergom) – Innovative Kitchen of theYear 2023
Platán Bisztró (Tata)
Anyukám Mondta (Encs)
Clarisse Étterem (Tura)

1. Platán Gourmet

platán gourmet tata — Platán Gourmet, Tata. Source: platantata.hu/gourmet-etterem

In recent years, chef István Pesti has proven that it doesn’t necessarily take a major tourist destination for a gourmet restaurant to find its audience, says Dining Guide.

One of the most influential figures of the modern Hungarian gastronomy realised his fine dining restaurant concept 50 kilometres from Budapest, on the shores of Lake Tatai, in a picturesque setting. In 2021, the former Platán formation was enriched with a new concept, the Platán Gourmet restaurant, napi.hu explains. (Find our article about Platán Gourmet HERE.)

In recognition of its unique vision and outstanding performance in 2022-2023, Platán Gourmet has been awarded this year’s Best Restaurant of the Year by the Dining Guide.

2. 42 Restaurant & Bar

After opening in 2022, 42 Restaurant immediately burst into the world of fine dining restaurants in Hungary. The owners operate the 42ROOM Boutique Hotel, located in the pedestrian street of Esztergom. The restaurant occupies the lower floor of the hotel.

42 Restaurant’s atmosphere is defined by its unique, contemporary, modern interior, with the furniture and equipment being from high-quality luxury brands.

3. Platán Bisztró

The light, “fine-bistro” sister of the fine dining Platán Gourmet is the Platán Bistro in Tata. The gastronomic concept of the kitchen is the brainchild of the Platán Group’s head chef István Pesti, while the kitchen is run by chef Donát Mogyorós.

The menu is a colourful one, with dishes made from both quality local and foreign ingredients.

4. Anyukám Mondta

restaurant, gastronomy, food — Photo: www.anyukammondta.hu

The iconic Anyukám Mondta is now one of the best-known rural restaurants in Hungary. Its name means “my mom said”. Szilárd Dudás and Szabolcs Dudás brothers’ Italian-Hungarian restaurant has a gourmet bistro style.

The menu is an eclectic mix of traditional Italian and Hungarian dishes with a contemporary twist.

5. Clarisse Étterem

clarisse étterem restaurant tura — Clarisse Étterem. Source: Facebook/Clarisse

Between Gödöllő and Hatvan, in Tura, the fine dining restaurant Clarisse is located in the Small Luxury Hotel Botaniq Tura Castle, a perfectly renovated building. The concept of a luxury restaurant in an imposing building with an impressive patina represents the sustainable, responsible gastronomic trend, napi.hu writes.

The degustation menu is based on local ingredients, locally grown and wild plants, as well as wild game from the local forests.

Lovable Restaurant of the Year – Casa Christa

casa christa restaurant — Casa Christa. Source: Facebook/Casa Christa

On the northern shore of Lake Balaton, above Balatonszőlős, you will find the Casa Christa estate in stunning surroundings. The resort-style accommodation offers a newly opened, high quality trattoria-style restaurant.

The menu’s clear-cut offer is based on local ingredients, but also influenced by international gastronomic styles. In 2023, the Dining Guide TOP100 Restaurant Guide recognised the popular Casa Christa’s achievements with the Lovable Restaurant of the Year award.

May 29, 2023

Inflation decreasing but another wave of price rises to come this summer in Hungary

Although slower than expected, inflation in Hungary is also clearly decreasing. In addition to the moderation in world prices, the significant fall in shop sales also points towards a more moderate price level. However, a new wave of price rises is expected from July.

From July, it is not only the abolition of price caps of food that could bring further price rises in Hungary. Once again, a major global inflationary surge is looming, triggered by a surge in world sugar prices not seen for more than a decade, napi.hu warns.

While many believe that the improving inflation figure will be accompanied by a broad-based fall in consumer prices, this is not the case. The price level, which has now caused a significant fall in demand and a long-unprecedented fall in retail sales, is set to be permanent. The burden on the population can only be eased in the long term by wage increases and hence by an increase in purchasing power.

Official prices are the main reason for the EU-record inflation in Hungary

Prices of food commodities and the main agricultural products have been falling on the world market for months, with consumer prices still less affected. However, there are increasing signs that we cannot calm down. The risk of another global price explosion remains high.

Grocery stores are being forced to act because of falling retail sales, while the purchase price of products with official prices (price caps) has long been much higher than the selling price. As a result, operators are having to absorb heavy losses. The whole product sector holds the price caps responsible for Hungary’s record-breaking inflation in Europe, napi.hu writes.

New wave of price rises to come?

From July, the government is expected to phase out the price caps for real. They will be replaced by compulsory price reductions from June and a price monitoring system to support market competition from July. The lifting of price freezes/official prices in July will lead to more moderate price increases than if the move had been made a few months ago. However, the re-pricing of fixed-price products will still be a major burden.

Decade-long record-breaking price boom could be repeated

Among the official-priced products, the rise in the price of granulated sugar could be dramatic. World sugar prices have not been as high or risen as fast as in recent months for more than a decade. Rising and sustained high sugar prices, just like energy and cereal prices, could lead to another unprecedented rise in food prices.

If the price of sugar rises, the price of substitutes to replace it, which are already much more expensive, will also rise. A global sugar price explosion would affect all food products. The extent of the price increase is not yet foreseeable, but all the signs point to a much higher price level.

May 29, 2023