Hospitality sector expects busier terraces but staff shortage continues

Now that the first officially warm day of the year has arrived, cafés and restaurants expect busier terraces. However, the hospitality sector in the Netherlands is not yet out of the woods. For example, there is still a shortage of staff. It is also possible that a beer in the sun is now much more expensive than it was a year ago.

"As soon as the sun shines, the Dutch go out on the terrace. So it will be busier on the terraces than on previous weekends," said a spokesperson for the trade association KHN. The temperature at the weather station in De Bilt even rose to 23.2 degrees at 2.30 p.m. on Saturday. This made it officially the warmest April 6 ever recorded.

After a winter spent indoors, the reopening of the terraces is an "eagerly awaited moment" for restaurant owners, according to the association. Although turnover in the hospitality sector grew strongly last year, profit margins were under pressure, partly due to higher energy and wage costs.

KHN president Marijke Vuik said in January that the hospitality sector would have to charge more for food, drinks and overnight stays to avoid going bankrupt. However, how much more expensive everything would have to become to compensate for the increased costs would vary greatly from business to business.

"2023 was another tough year for the hospitality sector. For many, 2024 will still be a 'muddle through' for a while," experts from Rabobank concluded. However, reports of less pressure on margins and an increase in the number of overnight stays are positive, according to the bank.

The industry assumes that the staff shortage in the hospitality sector will continue in the coming years. "This is mainly due to the aging population and the decline in the number of young people available for the sector. There is more demand for new staff in one place than elsewhere, but additional staff are welcome everywhere," the KHN spokesperson explained. "We can see that the peak of the staff shortage is behind us."

Analysts monitoring major brewers such as Heineken, Carlsberg and AB InBev for investors are already seeing a ray of hope this year. They point out that major sporting events, particularly the European Football Championship, could boost beer consumption significantly. If the Netherlands goes far in the football tournament, many additional beers will be sold nationwide. This means additional turnover for the sector.