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After VAT Cut, Few German Restaurants Lower Food Prices

Many operators say higher wages and operating costs leave the tax relief to shore up finances rather than fund broad menu discounts.

Overview

  • The reduced rate on prepared food took effect on January 1, dropping VAT from 19% to 7%, but beverages remain excluded, limiting the impact on total bills.
  • Dehoga Bayern reports most businesses will keep the savings to stabilize operations, with only about 8% expecting to pass even part of it to guests.
  • Restaurateurs cite a higher minimum wage of €13.90 and rising expenses, with one operator reporting roughly 35% cost growth and others noting a revenue drop of about 14% from 2024 to 2025.
  • In Bamberg, the Brasserie and sister venues visibly trimmed select dishes by up to €0.40 by crossing out old prices, with similar small reductions mentioned in Fürth and Zirndorf.
  • A Facebook post highlights unusually low prices at a Bad Kötzting inn, including a €11.80 schnitzel with fries, though the shared price list is not fully verified.