Overview
- The reduced rate for meals eaten on premises took effect nationwide on 1 January after the Bundesrat cleared the measure in late December.
- Beverages are excluded from the reduction, keeping the cut focused on prepared food served in restaurants.
- Industry group Dehoga welcomes the change as overdue relief and a correction of a tax disadvantage versus takeaway providers.
- Regional data show persistent strain: in Baden-Württemberg real hospitality turnover fell 2.4% from January to October 2025, with more than 3,000 closures since 2019.
- Restaurateurs report squeezed margins from rising personnel, energy, food and rent costs, noting the minimum wage is now €13.90 and set to reach €14.60 in 2027, so menus are more likely to stay flat than get cheaper.