Catering Places to Close As Costs Increase in Hungary

More restaurants are being forced to close down due to the economic crisis, rising overheads, rising prices for raw materials and labor shortages, and with prices rising, people are also being more careful about what they spend, resulting in a backlog of customers.

As an example, the Új Sipos, a landmark restaurant in Budapest's 3rd district, is closing, and according to its community page, the restaurant will no longer be welcoming customers in its current form from September 1. The tenants can no longer afford to run the restaurant due to the energy crisis and the ever-increasing cost of raw materials.

The Hungarian Hospitality Industry Association estimates that there are 3,400 fewer catering establishments – including 1,400 restaurants – than there were before the pandemic. However, the current situation could affect the sector even more severely.

Tamás Flesch, honorary president of the Hungarian Hotel & Restaurant Association, said earlier that 20-25% of hotels and 30-50% of restaurants could close due to inflation and overheads.