The pop-up restaurant opened by Lidl as a marketing stunt has gotten people moving. Does it have any effect on the restaurant industry?
Pop-up restaurant Lidler’s prices have spoken. Jenni Gästgivar
A four-course dinner menu in a quality restaurant for 12 euros. This is only possible in Finland in dreams or marketing efforts.
The latter was organized by Lidl when it founded the restaurant Lidlerien together by Henri Alen with. Only the costs of raw materials are included in the prices of the pop-up restaurant. That’s why the prices are so affordable.
Does such cheap restaurant food distort people’s image of the prices of real restaurants?
We asked the CEO of Mara, the tourism and restaurant industry’s benefit association, about it From Timo Lap.
At the beginning of November, Timo Lappi was a guest of Kauppalehti Talousaaamu. Outi Järvinen
Although Lidl’s pop-up restaurant gives a completely misleading picture of the price of restaurant food, Lappi doesn’t think that people think it’s realism.
At least they don’t think, who are clear about what the campaign is about.
– Those prices have nothing to do with normal restaurant operations, Lappi states on the phone.
In the real restaurant world, the situation is quite different.
So what makes up the price of restaurant food?
– Of course, the proportion of raw materials depends on what kind of restaurant it is, but it is about thirty percent on both sides of the total price, Lappi says.
About 30 percent of the price is labor costs. Taxes take up almost 30 percent of your own, rent goes about 10 percent, and there are various smaller expenses on top of that. In the end, the entrepreneur is left with a few percent of the portion.
– I hope there will be something for the last entrepreneur as well, Lappi states.
If the customer doesn’t drink any alcohol or other drinks with the meal, but only tap water, the restaurant’s margin is even lower. Lappi reminds us that it’s not worth comparing Finnish wine prices with Southern European countries, because we have the harshest taxation in the European Union in all beverage groups.
The share of raw materials is actually about 30 percent of the price of restaurant portions. Jenni Gästgivar
However, Lapland does not believe that Lidl’s campaign will have an impact on the restaurant industry one way or the other.
Instead, it would have an effect if, for example, gift cards to restaurants were given as a Christmas present or families went to restaurants together.
– That would be an act that would help entrepreneurs and employees. And of course also the state, when there would be a lot of tax revenue.
According to Lappi, especially in Helsinki, young adults, aged 25–35, are really important customers, but they are clearly more strict now. It is immediately visible in the demand for dinner restaurants.
– When you compare Helsinki to Stockholm, Copenhagen or Oslo, there are a lot of people over 50 and pensioners in those cities eating in restaurants in the evenings. Clearly less in Finland, Lappi laments and continues:
– Not to mention Paris. In the evening, there are people in their 80s eating with families of several generations. It’s amazing. Is our restaurant culture still so young? Young adults are by far the most important customer base for dinner restaurants in Finland, Lappi states.
Despite everything, there is faith in the future. One of the questions in the trend survey of the restaurant industry by Mara Kantar is whether you have eaten in a restaurant in the last two weeks.
– There has been a huge change. In 2000, 57 percent still answered that they had not been, and last year only 19 percent answered the same. You also have to take into account that 25 years ago the economy was strong.
Lapland thanks Finnish restaurant workers. More than 80,000 respondents of an international survey conducted in 2017 stated that Finland and Cyprus had the friendliest restaurant service.
– We have great raw materials and good service and infrastructure. Now we just need to get people to spend as well, Lappi sums up.