Steyr” restaurant on the main market closed – bankruptcy strikes!

Steyr” restaurant on the main market closed – bankruptcy strikes!

The “Steyr” restaurant on the main market in Dresden closed its doors on June 1, 2025. This sad news is reinforced by a note on the front door citing economic and political reasons for the closure. According to reports from Radio Zwickau The operating company has filed for bankruptcy and proceedings have been opened that also include seven other catering establishments. Business lawyer Andreas Hiecke from Plauen confirms that declining sales and rising costs made the bitter decision necessary.

The closure of the “Steyr” is not an isolated case. The catering industry is in a deep crisis; the effects of the pandemic and widespread inflation have hit many businesses hard. In 2023, one in ten companies in the catering industry will have given up daily news reported. Since 2020, around 48,000 catering establishments have had to close their doors, of which 6,100 have filed for bankruptcy.

The current challenges of the catering industry

In 2023, the industry will lack a positive trend, because with 14,000 closures, the number of catering establishments that had to close was higher than in the previous three years. The reasons for this are complex: price increases, the war in Ukraine and the long-term consequences of inflation are putting enormous strain on operators. This is shown by a study by the credit agency Creditreform, which is headed by Patrik-Ludwig Hantzsch.

A particularly big blow was the increase in the food sales tax to 19 percent since January 2024, after the tax rate was reduced to 7 percent during the pandemic. The general manager of DEHOGA, Ingrid Hartges, describes the situation as “bitter”. Rising personnel costs and food prices, as well as the increasing shortage of personnel, are putting a heavy burden on companies.

Future outlook and predicted bankruptcies

According to information from Statista Around 62,000 catering establishments closed between 2019 and 2023, around 8,000 of them due to bankruptcies. The situation remains critical as experts predict an increase in bankruptcy cases to pre-pandemic levels. In 2024, it is expected that there will be more than 15,000 catering establishments in Germany at risk of insolvency.

Young companies and caterers are particularly affected, with 49 percent of all insolvencies occurring in companies that are five years old or less. According to DEHOGA, the overall economic conditions for the hospitality industry have not improved despite the easing of restrictions. It remains to be seen how the industry will develop in the coming years.

In the meantime, closed businesses like the “Steyr” stand as a haunting reminder of the challenges facing the catering industry. Around 50 employees were recently informed of their layoffs at a works meeting, while the “Uluru” restaurant in Plauen and its catering department were granted a four-week extension in order to be able to process outstanding orders.