Overview
- Germany cut VAT on restaurant food from 19% to 7% on January 1, coinciding with a minimum wage rise to €13.90 that many operators say offsets potential price reductions.
- DEHOGA officials and local restaurateurs report using the tax relief to stabilize finances rather than broadly lowering menus, citing persistent pressures from labor, energy and inputs.
- Large chains are passing on savings selectively: McDonald’s reduced prices on several menus, Nordsee set its Backfisch-Menü at €8.99 nationwide, and KFC pledged limited pass‑through on items such as Hot Wings and corn.
- Some independents are holding prices or offering targeted deals, while a few report modest cuts; consumer frustration over unchanged bills is visible in social media complaints.
- Austria announced it will halve VAT on basic foodstuffs to about 5% from July 2026, to be funded by a third‑country parcel fee and a levy on non‑recyclable plastic, with stronger competition authority powers to ensure pass‑through and the exact basket still to be defined.