More restaurants for sale as financial troubles mount

The number of catering businesses for sale in the Netherlands increased by at least a quarter since the beginning of this year. Many restaurant and cafe owners are giving up due to financial problems, NOS reports after speaking to brokers, catering businesses, and sector economist Gerarda Westerhuis of ABN Amro.

Brokers estimate that the number of catering businesses for sale increased by 25 to 30 percent compared to the past two coronavirus years. Westerhuis confirmed the increase.

Hospitality association KHN told NOS that there are several reasons for the increase in catering owners selling their businesses. “Consider the uncertainty about the coming winter and the staff shortages,” a spokesperson said. “Many entrepreneurs also struggle with coronavirus debts, rising prices, and higher personnel costs. Entrepreneurs take stock and see if they can continue.”

The government’s coronavirus support measures also kept struggling companies running over the past two years. Now that the support stopped, these businesses are starting to topple. “The coronavirus support artificially kept a lot of parties alive,” Gertjan Slob of Locatus said to NOS. “They’re falling over now.”

Not all regions and segments of the catering industry are noticing an increase in entrepreneurs throwing in the towel. There have also been slightly more buyers for catering businesses since the start of the year, showing that many people have confidence in the future of the catering sector.

“On the one hand, you see that companies that were already about to collapse before the coronavirus are now doing so,” Slob of Locatus said to the broadcaster. “On the other hand, the parties that are doing well and want to expand are doing the same. And that keeps each other in balance.”