by editorial office, chd
Recent survey by CHD Expert – three in four no longer anticipate a reduction of value-added tax this year
The fight for VAT rate cuts continues. In the gastronomy and hotel industry, however, people are losing hope for a timely reduction of VAT rates to seven percent, as was rendered possible by a decision of the EU Ministers of Finance. Three in four executives in the hospitality industry no longer expect rate cuts this year. The VAT, which was raised to 19 percent only two years ago, has become a large burden for most restaurateurs. For two thirds of the respondents, value-added taxes mark the largest burden on their establishments, greater even than rising energy costs.
„The disadvantages of the high value-added tax for the German gastronomy and hotel industry are immense“, Thilo Lambracht, managing partner of CHD Expert (Deutschland) GmbH, analyzes. „Foodstuffs are taxed at seven percent in the retail market, while snacks in the gastronomy are taxed at 19 percent. Also, establishments in the gastronomy will face grave economic disadvantages especially in the regions close to the French border as soon as restaurants are subject to the reduced tax rates of 5.5% from the middle of the year or early 2010 on.“
The controversial issue of value-added taxes is clearly the front-runner on the list of major political issues for all types of establishments in the out-of-house market – gastronomy, hotel industry, company catering, catering. The burden of taxes in general and bureaucratic regulations, on the other hand, place third and fifth, respectively, in the list of the largest obstacles for food service companies.
The development of energy prices is a large burden for nearly 60 percent of top decision makers. „In nearly a third of all establishments, the expenses for heating and electricity amount to more than ten percent of the entire budget by now“, said Lambracht. „Finding ways to limit these expenses in the most energy-intensive companies has become one of the top 3 topics in management.“
The economic crisis is currently a large obstacle for only 45 percent of restaurateurs. For around one in four, high f&b procurement prices are increasingly noticeable. Only 22 percent of top decision makers state the increased difficulty of acquiring loans as a large hindrance.
About CHD Expert (Deutschland) GmbH: The company’s business branches range from market research over direct marketing to data management. Its company philosophy is „Know it and do it!“ It was founded in 1997 as Marktplatz Hotel GmbH and seven years ago joined the internationally operating CHD Expert Group, which has branches in all economically significant European countries, as well as the USA and Canada. CHD Expert is a member of the Preferred Partners of the German Hotel Association (IHA). Its clientele includes well-known companies in the fields of food & beverages, furnishing, media and others.
