Catering insolvencies double this year

In the first two months of this year, 18 catering and accommodation establishments have gone bankrupt - twice as many as a year ago, the company „Creditreform Lietuva“ announced on Friday.

According to its analysts, the actual number of bankruptcies is higher because some companies have already closed their restaurants, but have not yet registered their status as a bankrupt enterprise.

„Among the reasons for the bankruptcies, the most frequently cited are the hike in the value-added tax, debts lingering from the pandemic, the increase in the monthly minimum wage and the decline in the number of visitors to restaurants and cafes due to high prices, the report said.

The 9% VAT rate for catering businesses, which was in place from 2021, will remain in place until the start of 2024, and the standard rate of 21% will remain in place until 2024.

According to Creditreform Lietuvos“, in January-February this year, two Georgian food establishments, three pizzerias, a sushi restaurant, a shisha restaurant, a hookah bar, and a vegetarian café, as well as two restaurants in Palanga and the company that runs the hotel „Palūšės kopa“ „Palūšės turas“ have all exited the market.

BNS previously wrote that this year the company „Burokėlis ir krapas“, which operates pizzerias „Jurgis ir drakonas“, „Burokėlis ir krapas“, „Burokėlis ir krapas“, „Amber Food“, a company of the „Amber Food“ group of restaurants „Amber Food“, „Saldi kava“, which operates the „Sugamour“ and „Mollusca“ restaurants, have been bankrupted.

Sixty-seven catering and accommodation establishments have gone bankrupt in recent years. Analysts at „Creditreform Lithuania“ predict that this number will be exceeded this year.

Citing data from the Centre of Registers, Creditref Credit Creditref Creditref said that bankruptcies in manufacturing (from 14 to 17), construction (from 36 to 39) and administrative and service activities (from 8 to 10) have increased this year, with a total of 168 companies going bankrupt.