The Dutch hospitality sector must prepare for a period of economic setbacks. Rising prices for energy and food are driving up costs, while customers want to spend less in restaurants due to declining purchasing power. That is what economists at ABN Amro say Tuesday in a new report. In addition, hospitality companies spend more on average on personnel costs and they are still dealing with a tight labor market.
Read also: The labor market is still tight, but things are changing
For this year they foresee a “considerable” increase in turnover for catering companies: about 35 percent increase compared to last year. This brings the sector to the same level as before the corona crisis, but probably not for long. In 2023, the increase will level off and economists expect the turnover of catering companies to fall by 2 percent. According to them, it will lead to more bankruptcies in the hospitality sector.
An important cause is the spending behavior of customers; according to ABN, they will eat out less often next year and if they do visit a restaurant they will spend less for an average meal. Another factor is that the regular catering industry faces more competition from delivery services and supermarkets, where consumers are increasingly able to buy hot meals. Pubs will also have a hard time next year: the economists expect a contraction of 2 percent.