The hospitality sector in Germany is facing significant challenges, prompting concerns about a potential shift towards a tiered system reminiscent of conditions seen in the United States. Thomas Geppert, head of the Bavarian Dehoga (German Hotel and Restaurant Association), has cautioned against the emergence of a two-tiered gastronomy, characterized by fast-food chains catering to mass consumption in popular areas and exclusive, high-end establishments appealing to a wealthy clientele.
Geppert expressed his concern in response to the industry’s struggles, which include rising food costs, shrinking revenues and a persistent shortage of workers. While the recently announced reduction of the value-added tax (VAT) from 19% to 7% is a welcome measure, he believes it offers insufficient buffering against the mounting financial pressures.
He underscored the vital role of traditional pubs and restaurants, particularly in rural communities, emphasizing that their decline poses a threat to the social fabric of villages. “When the pub dies, the village dies” Geppert stated. He argued that these establishments serve as essential hubs for community interaction, fostering social cohesion across socioeconomic divides.
The current labor shortage is particularly acute and, according to Geppert, cannot be resolved without international recruitment. He has urgently appealed to the German government to reconsider its policy of limiting regular migration from the Western Balkans to 25,000 individuals per year. Previously, the government had increased this limit to 50,000, but Geppert believes even that figure is inadequate.
He stressed the desire of individuals in the Western Balkans to work and the critical need for their contribution to the German workforce. “We are harming ourselves” he warned, advocating for legal migration pathways with proper employment contracts. The sector’s leaders fear that restrictive immigration policies risk creating an unsustainable situation for the long-term vitality of the industry and its social contribution.
