Overview

• Official figures show real hospitality revenue down about 3.7% to 4.1% in the first half of 2025 and roughly 15% below 2019 levels.
• DEHOGA reports July net sales fell 9.3% year over year, with nearly 40% of businesses fearing losses in 2025 and only about 24% calling late‑summer bookings good.
• Menu prices have risen more than 26% since early 2022 as labor costs climbed about 34% and energy and food rose around 27% to 30%, compounded by the return to 19% VAT in 2024.
• Roughly 72% of surveyed operators say they have been unable to make necessary investments, underscoring weakened finances and stalled modernization.
• The coalition plans to cut VAT on dine‑in meals to 7% from 1 January 2026, a move industry sees as lifeline but that economists and officials warn may drain public revenue and may not lower prices.