Sad end of the gastro factory: Plauen's restaurants are on the verge of extinction!

Sad end of the gastro factory: Plauen's restaurants are on the verge of extinction!

The situation surrounding the “Gastrofabrik” in Plauen is causing a lot of talk in the city. A few days ago, the bankruptcy of the popular restaurant group was announced, which has provided culinary diversity in a prime city center location since its inception. While many citizens look at the closures with regret, there are also voices of gloating who comment on the situation of the owner Manuel Bendig. As the Free press reported, the tone in Plauen is between pity and malicious comments.

The insolvency was officially announced by Andreas Hiecke, the insolvency administrator, on Monday and comes as a surprise to many. Previously there were always hopes of a positive turnaround for the city's catering industry, but these have now suddenly been dashed. The situation is particularly tragic for the five restaurants, which were very popular not only with tourists but also with locals. The news about Bendig's payment difficulties became public shortly before Easter and came at a time when the catering industry is already under enormous pressure.

The crisis in the catering industry

The case of the “Gastrofabrik” is unfortunately not an isolated case. Year after year, numerous catering establishments fight for survival. In 2023, one in ten companies in the catering industry will have given up. Since 2020, around 48,000 businesses have had to close their doors and 6,100 applications for insolvency have been filed. According to an analysis by daily news The number of closures last year was 14,000, which is higher than in the previous three years, but below the conditions before the corona pandemic.

The catering industry has suffered enormously in recent years, not least due to the effects of the pandemic and inflation, which is causing operating costs to skyrocket. In addition, the industry has had to cope with an increase in VAT for food from 7 to 19 percent since January 2024, which further aggravates the situation. The federal government is expecting additional revenue of 3.4 billion euros from this tax increase, but the question remains: How many companies can survive this?

Bitter reality

Ingrid Hartges, general manager of DEHOGA, describes the current situation as “bitter”. In addition to the increased costs, there are also problems with staff, which puts additional strain on many restaurateurs. Interestingly, 88 percent of bankruptcies affected small businesses, often with only a few employees. The situation looks particularly bleak for young companies founded less than five years ago: almost half of these companies are already on the brink.

The year 2024 could be a test for many catering businesses, as experts predict an increase in insolvency cases to pre-pandemic levels. More than 15,000 restaurants, pubs and cafés across Germany are assessed as being at risk of insolvency. A worrying trend that is not only felt in Plauen.

The future of the gastro factory remains uncertain, and the fate of the employees hangs in the balance. The case is not only a sign of the difficulties that the catering industry has to contend with, but also a passionate call to the political and social levels to support the interests of this important industry. Without a lively gastronomy, every city has lost much of its charm and quality of life.