Overview
- Germany lowered VAT on restaurant food from 19% to 7% on January 1 as a permanent measure to support the sector.
- McDonald’s cut recommended prices on select menus, Nordsee set its Backfisch menu at €8.99 nationwide, and KFC announced selective reductions on items such as Hot Wings and corn.
- Industry groups and restaurateurs report that the minimum wage increase to €13.90 and higher energy and food costs leave little room for broad price cuts, with many operators holding prices steady.
- A NIM survey of 1,010 adults conducted January 2–7 found only 13% expect lower restaurant prices, 41% foresee price stability, and 23% say they are likely to dine out more.
- Analysts and consumer advocates highlight asymmetric pass‑through and warn that large chains may capture a disproportionate share of the tax benefit compared with small independent venues.