Want a successful restaurant in the Netherlands? Make it a pancake shop, says ABN Amro

Pancake restaurants in the Netherlands enjoy continued success, even when the rest of the hospitality sector is struggling. According to ABN Amro, this is due to their efficient operations, attractive pricing, and beautiful locations. The aging population means their clientele is expanding, and even staff shortages don’t seem to impact the sector.

The pancake sector is one of the most stable segments in the Dutch hospitality industry. In the past eight years, only five pancake shops have gone bankrupt. And while other catering establishments struggle to retain guests and staff, pancake restaurants continue to thrive. The number of package restaurants increased by 11.9 percent between 2010 and 2024, according to figures from Locatus.

According to ABN Amro, a high turnover rate is the key factor that makes pancake houses so profitable. Pancakes are relatively quick to make, so guests can be served quickly—a big bonus for families with young children. This also means that a table can be occupied several times in one evening.

Pancake ingredients are also relatively cheap, so pancake restaurants’ pricing is attractive for a wide audience. And the limited number of ingredients limits food waste. That combination ensures that margins are higher, which allows pancake restaurants to keep their prices competitive.

Pancake restaurants are also often strategically located near nature reserves, hiking trails, and cycling routes, making them ideal for families, cyclists, and hikers looking for a quick and relaxing dining experience after an active day. “The combination of a beautiful environment and an accessible menu ensures a constant flow of guests,” ABN Amro said.

And pancake houses’ client base is growing. Seniors are pancake restaurants’ most loyal customers, and according to Statistics Netherlands (CBS), the percentage of Netherlands residents over 65 will grow from 20.5 percent in 2024 to 24.9 percent in 2040. “The aging population ensures that more grandparents and their children and grandchildren find their way to pancake restaurants,” Janneke van der Ham, marketing specialist at the Association of Certified Pancake Restaurants, told the bank.

Pancake restaurants excel at retaining staff, and unlike in the rest of the hospitality industry, staff shortages do not seem to affect the segment. According to CBS, over 42 percent of entrepreneurs in the hospitality industry experience the lack of sufficient staff as the biggest obstacle to their business, but not pancake houses.

Hein Verhoeven, owner of Pannekoekenrestaurant Belveren in Haaren, has no open vacancies, and his employees stay for a long time. “We even had an employee who started at the age of 15 and continued to help us in the restaurant in the summer until her career as a doctor.” He attributes that to investments in a good working atmosphere, reasonable working hours, and opportunities for growth.