Many people find eating out too expensive

Restaurants and cafes saw their turnover increase significantly last year. But the growth is mainly due to increased prices rather than more food and drink being sold. According to Inga Blokker, director of the Netherlands FoodService Institute, many people in the Netherlands think eating out is "too expensive," and the revenue model in the industry is under pressure.

The picture of the catering industry that the institute presented on Monday during the Horecava catering trade fair is not very rosy. The industry totaled 11.6 billion euros, almost 13 percent more than a year earlier. But Blokker is concerned about profitability. According to her, nearly all catering companies are struggling with shrinking profit margins due to higher costs. There is also a lack of staff and competition from supermarkets, for example, is increasing.

"Retailers are making great strides to purchase European products, while the catering industry is still working on getting three bottles of milk from the local farmer, via the wholesaler, to the entrepreneur," Blokker outlines. "The catering industry must now solve that price difference by offering an experience to the guests. But the possibilities for this have now really been used."

She pleads for entrepreneurs in the sector to work more efficiently. "It is necessary to keep the catering industry affordable for the consumer. It should continue to be for everyone and not just a 'thing' for the 'happy few.’'"

The FSIN director also sees some bright spots. The sales volume dropped in the second half of 2023 but not as strongly as expected. Blokker notices that the sentiment is different than during the financial crisis of 2008. "Even now, many people find eating out too expensive, but the need for it among younger generations is many times greater than was the case in the past."

According to her, the new generation spends around 2200 euros a year on average on eating out, while somebody from the baby boomer generation does not want to spend more than 485 euros a year. Despite the problems, the FSIN again expects a turnover growth of 3.5 percent for 2024.

"We still expect slight growth, even if consumers keep their hands on their purse strings. The economic projections are not fantastic, but they are not dramatic either. Purchasing power will rise again next year after the sharp decline in 2023. Unemployment is historically low, inflation is falling sharply, tourism is continuing to improve, and consumer confidence is also improving," Blokker sums up.