The fine dining scene in Berlin, the capital of the EU’s strongest economy, is facing a crisis as five of the highest-awarded restaurants have closed in the past 12 months. Sebastian Frank, head chef at Horváth, a double Michelin-starred restaurant, has described the situation as serious, with more closures on the horizon. The industry has been hit hard by major global events such as the COVID-19 pandemic, Russia’s invasion of Ukraine, and soaring inflation.
Many restaurants have been forced to close due to increased operating costs, a drop in tourism numbers, and a lack of wealthy tourists. In response to the crisis, restaurants are offering smaller, more affordable menus to attract customers. However, Frank believes that the root cause of the problem lies in an expansive financial policy that disproportionately affects the lower classes, making it difficult for them to afford dining out.
Both Frank and Gerrit Buchhorn, managing director of DEHOGA Berlin, have criticized the government for its handling of the situation and are calling for action to support the struggling restaurant industry. Buchhorn suggests reducing restaurant VAT, while Frank advocates for a more restrictive financial policy to stabilize costs. The industry is bracing for further challenges, with Buchhorn warning of significant cuts ahead.
The challenges facing Berlin’s fine dining scene are indicative of deeper problems in the German capital, where rising rents and costs are putting pressure on restaurants across the board. Despite hosting the Euro football championship in 2024, many restaurants are struggling to turn a profit. The future looks uncertain for the industry, with Frank and Buchhorn warning that more closures and challenges lie ahead. The government’s response to the crisis will be crucial in determining the fate of Berlin’s restaurants.
