Gastronomy in MV: Why food is becoming a luxury good!

Gastronomy in MV: Why food is becoming a luxury good!

In Germany there is a heated debate about the sharp rise in restaurant prices. The focus here is on gastronomy in the northeast, especially in Mecklenburg-Western Pomerania. A consumer who writes a column reflecting on these topics found that prices there are significantly higher than in regions such as the Lake Constance area. A schnitzel with mushroom cream sauce costs around 16 euros in Ravensburg, while prices for various meat dishes are between 17 and 18 euros. Where does this price difference come from?

A key reason is the lack of dense networks in the north, like those found by catering players in the south. There, more competition and better purchasing prices are driving prices down. In Mecklenburg-Western Pomerania, on the other hand, there are often no direct routes to producers, and the higher transport costs due to the greater distances contribute to the price increase. This is compounded by the fact that experienced professionals are rare in the region, leading to inefficient processes and higher personnel costs.

Rising gastronomy prices and their background

A look at developments in the catering industry shows that prices in restaurants and the hotel industry continue to rise - despite generally lower inflation. In April 2024, prices rose by almost 10 percent compared to the same month last year, which means an average increase in the industry of 30 percent since 2020. The reasons for this are varied. Increased minimum wages, more expensive transport services and higher prices for food and energy are key factors. With the introduction of the regular VAT rate of 19 percent since January 2024, restaurant guests are also feeling the effects of these developments.

People in Mecklenburg-Western Pomerania often have the feeling that they can no longer afford to go to restaurants, so many prefer to cook for themselves. This is also reflected in the supply trends: While harbor bars and classic restaurants are fighting for survival, snack bars are enjoying great popularity. An example of this is the Hotel Baltic in Zinnowitz, which offers various evening buffets, including a regular buffet for 38 euros and a cheaper option for 18 euros, which includes pizza, pasta and antipasti.

The financial burden of food prices

Another key issue is food prices, which have risen significantly in recent years. Since 2020, the cost of food has increased by 32.8 percent, which is a major burden, especially for households. Food currently accounts for around 14.2 percent of private consumer spending, although this share has fallen significantly since the turn of the millennium. The uncertainty caused by the Ukraine war has also weighed on consumer sentiment in Germany and is contributing to price increases.

If you look at these developments in gastronomy and food prices, it quickly becomes clear: eating out could soon become a luxury that only a few can afford. There are not only tastes but also financial hurdles between the search field of restaurant visits and the home stove.