Terraces reopen this weekend, but how will the prices change?

According to predictions, in the case of restaurants, a more considerable price increase can be expected shortly after the opening. The question is: how much will people tolerate this after the first euphoric outburst?

Earlier, Viktor Orbán announced that the terrace fees would be abolished. According to Pál Zoltán Gál, this is a great form of aid because the profession has just passed a challenging period. It is still vital for the operators of the terraces to think about how profitable it will be to open the terrace.

In the program ATV Start, he said the following about the reopening of terraces:

The conditions for opening terraces were already in place for caterers, but the question is whether or not the weather and demand justify the opening of terraces in all restaurants.

The president of the association sees that many have left the field permanently due to the crisis, which could lead to a shortage of workforce in the high season. He pointed out that Austria is also planning to reopen, so some of the crew could leak abroad as well.

After being asked whether a larger price increase is expected, Zoltán Pál Gál said that they are still guessing, but there are predictions that price increase may be a factor in the short term, but probably will not be tolerated by the customer base for long.

At the same time, there is room for cost-based price increases right now since the prices of material have risen. According to a report by the Central Statistical Office (CSO), consumer prices were 3.1 per cent higher in February than a year earlier and up 0.7 per cent from the previous month.

The quarantine caused by the third wave caused further damage to the supply side. This means that after reopening, even stronger demand will meet an even weaker supply. Declining supply reduces competition, making it easier to price higher.

It will also cost more to retain or even hire staff. Besides, employers need to completely rebuild their “teams,” to which more energy must now be devoted. That consumes a large amount of time and money.

He also stated in the ATV Start program that they are confident that if spring finally comes, more and more places can be adequately taken advantage of.

Source: atv.hu; napi.hu