Sad: the number of Amsterdam hospitality businesses up for sale is rising enormously

That corona hit the hospitality industry hard is beyond doubt. Recently, the sad news broke that Amsterdam restaurant Vanderveen had to close its doors shortly after receiving a Michelin star. And there are many more Amsterdam hospitality businesses in trouble. The number of hospitality businesses being offered for takeover has increased rapidly in just a few months.

It is almost something you could call a trend. But a sad one. Het Parool spoke to Ronald Koks, owner of horecasite.nl. Ronald says he receives around 60 new registrations per month from hospitality business owners who want to offer their business for takeover. The high figures are particularly striking in Amsterdam. According to Ronald, many new hospitality businesses opened in the years before corona. They managed to stay afloat with government support during corona, but are now still going under.

In Amsterdam, among others, vegan restaurant Lokol, Russian restaurant Oleg and Le Garage went bankrupt, for example because a takeover fell through.

2,300 hospitality businesses up for sale

There are currently around 2,300 hospitality businesses up for sale on horecasite.nl. During corona, there were ‘only’ 1,800. Smaller hospitality businesses in particular are struggling. They are still recovering from corona. With the Dutch Tax and Customs Administration now putting pressure on businesses to repay their debts, things are being made even more difficult for them. Plus: inflation is also hitting the hospitality industry hard. Purchasing costs, rent, staff and energy all cost more than they did in previous years.

Done with fighting every day

So the financial side of the story seems clear. But there is another side to the coin, too. A mental side. Because psychologically, many hospitality operators are also having a hard time. They are tired of fighting every day to survive. That takes its toll. In addition, corona has caused many people—including hospitality entrepreneurs—to change their mindset. Do I still want to work so many hours? Do I still want this much stress? All factors that play a role in the decision to put a business up for takeover.

Bankrupt

Although it did not seem that way for a long time, the number of bankruptcies now also appears to be increasing. Making a profit is becoming more difficult. This is partly because many businesses do not want to pass on the higher costs they face to their customers. The fear that customers will then stay away is too great. But that fear is not necessarily justified. Het Parool spoke to Ward van der Stee, an economist at ABN AMRO. He sees that people are continuing to spend money on hospitality. We want to do enjoyable things, and that includes an afternoon on a terrace or an evening dining out.

Lots of casual eateries and coffee bars

An enormous number of casual eateries and coffee bars have been added in recent years. The number of casual eateries increased by almost 30%, while the number of coffee bars more than doubled. Many people had an overly romantic idea of what it would be like to run such a business, while in reality it can be quite disappointing. Baking cakes at home is fun, but turning it into your job is a different story. Estate agent Arends tells AD that it might actually be a good thing that ‘there will be a shake-out’. That way, mainly serious entrepreneurs will remain. On the other hand, those are primarily large companies rather than the small, creative entrepreneurs who truly have new ideas. And the prospect of ending up with mainly large chains, such as Starbucks, Captain Candy and all kinds of fast-food businesses, does not sound particularly cozy to us.

Taking over?

Are there also many aspiring hospitality entrepreneurs eager to take over one of these businesses? Hmm. Not really. Financing in particular proves difficult. It often takes a long time before a takeover is finalized. In addition, entrepreneurs ask for a substantial amount of money to take over the business. Het Parool writes that Lokol in Amsterdam was asking € 220,000 for, among other things, the inventory, location and transfer of the lease. Just try to find that kind of money somewhere at short notice.

If you do have that amount lying around somewhere and you can see yourself pursuing a career in hospitality, there may be a new future waiting for you.

Also read:

• Hit by corona: more and more hospitality businesses are going bankrupt
• Wow: this is how much prices at Michelin-starred restaurants have risen
• Ka-ching: these tricks make you order more in a restaurant

Source: Het Parool