The restaurant sector in Portugal is under pressure due to rising costs and the need for measures to guarantee business sustainability, an issue that gained prominence following statements by chef Rui Paula. According to , charges for raw materials, energy and wages have been rising, creating additional difficulties for many companies in the sector.
According to the same source, the prices of several essential products have registered significant increases in recent years, without this being fully reflected in the prices charged to consumers.
Alert launched by Rui Paula
Chef Rui Paula brought the topic to public debate by pointing out the need for structural changes. “It can’t continue like this,” said the chef, referring to the impact of costs on restaurant operations. “We want structural changes, a drop in VAT on meals from 13 to 10%, as in Spain, and VAT on wines from 23% to 13%, as in supermarkets”, he concludes.
Catering presents different realities depending on the type of establishment. According to the same source, independent restaurants face different challenges than those that are part of chains or large groups. This diversity makes it more complex to define uniform policies that respond to everyone’s needs.
Position of the Bank of Portugal
Banco do Portugal has been monitoring the evolution of the sector and recognizes the challenges, but does not point to a generalized crisis. Activity has maintained some stability. According to the governor of the Bank of Portugal, Álvaro Santos Pereira, the growth in tourism and consumption helped to sustain the sector, despite the difficulties associated with rising costs.
The reduction of ICMS appears as one of the main demands, however, the measure is not, for now, on the table. According to the same source, there are European countries where the rate applied to restoration is lower. The publication adds that this comparison has been used as an argument by businesspeople who defend a tax review.
After the pandemic period, the sector registered a recovery, but with new obstacles. The pressure on costs intensified again. The same source mentions that indicators such as profitability have been adjusting to this new economic reality.
Employee costs have also increased. Salary charges registered significant increases, contributing to the worsening of total expenses. The newspaper writes that this evolution poses additional challenges to the financial management of restaurants.
Difficult balance in accounts
Many establishments choose not to significantly increase prices to avoid losing customers. This decision limits the ability to absorb costs. The same source states that this fragile balance is currently one of the sector’s main concerns.
At the moment, businesspeople are awaiting political decisions that could alleviate the situation, as no concrete measures have yet been announced. The publication adds that the topic should continue to be debated in the coming months.
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