Oh no! Record number of hospitality bankruptcies in 2025
The hospitality sector is facing tough times: the Dutch restaurant industry is on track to reach a record 450 bankruptcies in 2025. In 2023, 199 restaurants already went under (according to Statistics Netherlands), and by November 2024 that number had risen to 260, according to an analysis by ABN AMRO and Hotelschool The Hague. What’s going on?
Rising costs due to inflation, higher energy prices, and substantial rent and wage increases are putting pressure on the sector. Since 2022, food and beverage prices have risen by more than 17 percent, while labor costs have also increased by 22 percent. And entrepreneurs are feeling the impact, as these cost increases are not always offset by higher revenues.
Small businesses are struggling
Small hospitality businesses have been hit the hardest. 17.8 percent of companies with 5 to 50 employees are in debt. Larger companies seem to have more control over their finances—our concern is that the hospitality offering will soon consist mainly of large chains. For now, the pressure remains high for smaller entrepreneurs, who often struggle to offset rising costs. ABN AMRO and Hotelschool The Hague not only conducted research, but also address the causes and solutions to the sector’s financial challenges.
Innovation as a solution
Fortunately, they say there are also opportunities. By embracing technology, such as inventory management and AI for staff scheduling, entrepreneurs can reduce their costs. Smart concepts such as discount dining could also appeal to younger generations, who are looking for affordable dining options. Because we’re hearing more and more that going out to eat is no longer affordable for many people too…
Read also:
- Real life: this hospitality problem is getting in the way of our friendship
- Smoke-free terraces?! Hospitality entrepreneurs and trade unions are concerned
- 10 painfully relatable situations for everyone who works or has worked in hospitality
Source: Entree Magazine
