High Inflation in Austria: Gastronomy Defends Itself Against Bad Image

Thomas Pescht, chairman of the gastronomy division of the Vienna Chamber of Commerce, said that due to external factors, price increases are necessary "to be able to operate at all cost-effectively." The additional costs are not fully passed on.

Chairman of Gastronomy Sees Rising Costs as Reason for High Inflation in the Industry

Even in the latest inflation figures for July, gastronomy is cited as one of the sectors where prices have risen the most within a year, Pescht complained via a release regarding the survey by Statistics Austria. "And the explanation for this is right next to it, namely the sharply rising costs for energy, food, and rents. And all these factors hit us directly in the gastronomy." Pescht also highlighted the wage increases in recent years, which have increased by a good 30 percent within five years. Beef has become 55 percent more expensive, pork more than 20 percent. Added to this are energy prices, insurance costs, maintenance costs, and last but not least, fees for water and waste disposal, which have "increased significantly."

"The businesses are doing what they can to increase their efficiency," said the division chairman. "They compare supplier offers, adjust their menus to current market conditions, and do everything to reduce their costs. Because they know that money is also tight for the guests." A survey among restaurateurs also shows that 90 percent of the establishments cannot fully pass on their additional costs. "Many restaurateurs further reduce their already thin margins so that customers continue to come. If they were to fully price in the cost increases, the establishments would be empty," says Pescht. He argues business-mindedly: If inns were visited more, the hosts could spread the fixed costs over more guests - and that helps with price calculation.

(APA/Red)

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