MBK-Limburg expects inflation to remain high until December. The catering sector in particular will take the heaviest blows, experts expect.
“Think of cafes and restaurants. Consumers will now have to make choices about how they will spend their money. Primary necessities such as food and having a warm house are given priority,” said Vice-President Paul Verhoeven of MKB-Limburg, the representative of the central economy. and small business.
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‘Income is falling’
According to the Central Bureau of Statistics (CBS), inflation was 11.2 percent last month. That is the strongest price increase in the eurozone, excluding the Baltic States. “If the 10 percent is passed, society’s income falls. And people will not spend the accumulated reserves from the corona period in a restaurant or cafe,” says Verhoeven.
Sanctions and export
Whether it is at the gas pump, in the supermarket or when paying the energy bill: life in the Netherlands and in Europe has become more expensive. According to Verhoeven, the prices are rising due to various factors. “Raw materials and energy costs have become more expensive. But the war in Ukraine also plays a role.” Due to all kinds of sanctions against Russia, companies cannot use products and Ukraine is struggling with export problems.
‘Crisis number three’
For example, Ukraine is an exporter of grains, important for making beer and bread, among other things. Products that the hospitality sector purchases from a supplier and ultimately end up in front of the consumer. Koninklijke Horeca Nederland (KHN) calls the rise in inflation a ‘third crisis’.
“Entrepreneurs are still recovering from the corona pandemic. That is the first blow. Subsequently, the industry struggles with a staff shortage, for which the sector has to adjust opening hours and receive fewer customers. And now the rising costs, crisis number three,” explains general director Dirk Beljaarts of Koninklijke Horeca Nederland.
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The corona aftermath
How much must – and more importantly: how much can – the catering industry still take? Not much anymore, because cafe and restaurant owners are struggling with financial problems and are still fighting to survive. According to Beljaarts, there is little money to invest and the industry does not have enough turnover to make up for payment arrears. Because that trouble was caused by the coronavirus and the rules imposed by the cabinet at the time, says the catering director.
The industry has received almost 6 billion euros in compensation for wage costs and fixed costs, but according to KHN this does not solve the problems. “Entrepreneurs have sacrificed a lot. This applies not only to the catering industry, but also to shopkeepers, for example. They did not receive full compensation, but only a part. So the supplement came from the entrepreneur’s own pot. pay back,” says the general manager of the trade association for the catering industry.
Tax relief
Because the cabinet is short of money, a number of intended tax relief for entrepreneurs will disappear from the coalition agreement. That works to the disadvantage of the industry, which is still working on the corona aftermath. “It is precisely now that the government should not look the other way and step in,” says Beljaarts.
Is there a solution?
The catering sector is powerless in this inflation story and cannot exert any influence, says the vice-chairman of MKB-Limburg. “It happens to you. Energy transition could be a solution, but that will certainly take a decade,” says Verhoeven.