Cost Development in the Gastronomy Sector – In-Depth Analysis
In-depth analysis of cost drivers in German gastronomy: labour costs +34% since 2022, energy prices +28% over 3.5 years, insolvencies at record high in 2024. The sector is heading for its sixth consecutive loss-making year in 2025.
Dramatic profitability collapse since 2020
Profit margins in German gastronomy typically range from 5–15% of revenue. Since 2020, a combination of pandemic lockdowns and subsequent cost explosions has made profitable operations increasingly difficult. The sector is heading for its sixth consecutive loss-making year in 2025.
Labour costs: the dominant pressure
The acute staff shortage following lockdowns and the minimum wage increase to €12 (October 2022) pushed personnel costs sharply higher. Since early 2022, labour costs have risen by approximately 34%. In many traditional restaurants, wages now exceed 40% of revenue.
Energy costs
Electricity and gas costs rose by nearly 28% over three and a half years since the 2022 energy crisis. The expiry of government price brakes on 31 December 2023 hit many operators particularly hard in 2024.
Insolvencies at record levels
The insolvency wave peaked in 2024 at the highest level in years. Most affected: urban restaurants with high staffing ratios and rents exceeding 10% of revenue.
Implications for investors and successors
This cost dynamic is central to purchase price negotiations and lease calculations. Properties with structural cost advantages — favourable energy supply, moderate rent/lease, good staff accessibility — hold a durable competitive edge.