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Rural Inn Closures Surge in Brandenburg as Demand Falls

Operators are introducing multifunction services by banking on a permanent VAT cut in January 2026 to stem a long-running downturn.

Overview

  • The number of rural dining venues in Germany fell from 4,101 in 2010 to 3,697 by 2023, with closures accelerating in Brandenburg this month.
  • Demographic shifts and younger customers’ preference for varied off-premise options have undercut traditional pub-style menus in village inns.
  • Poor rural transport links and high energy and labor costs have squeezed margins, contributing to a 4.6 percent real revenue decline in May.
  • Dehoga Bavaria’s president warns that half of the region’s inns could vanish without targeted relief, citing rising insolvencies and investment shortfalls.
  • A government decision to cut VAT on dining from 19 percent to 7 percent in January 2026 offers relief potential, though its impact on consumer prices is unconfirmed.