The fall in turnover of restaurants and cafes this year, the increasing pressure on wages in the market and the shortage of workers will lead to more bankruptcies in this sector, says Aleksandras Izgorodinas, an economist at the bank „Citadele“.

„I don't see restaurants cutting prices (...). Lithuania's economy is recovering more and more and it is likely that the recovery will strengthen and we will see a growing shortage of workers in the labour market in general. This will affect the restaurant and café market segment – there will be more bankruptcies“, – Izgorodinas said at a press conference on Thursday.

According to him, the highest risk of bankruptcies is in the middle class, the lowest – for restaurants in the cheaper and luxury segment, which are the least susceptible to recession or inflation.

„There will be a period of hunger games in the market where those who are the strongest, the most efficient will survive in the restaurants“, – said the economist.

He said the 8.6 per cent drop in the catering sector's turnover in January–May was mainly driven by the mid-range segment, as their prices have reached a level that is psychologically uncomfortable for consumers and encourages them to eat at home more often.

„The opinion of the Lithuanian population about finances is the best since March 2007, but (...) the population can't afford to spend money in restaurants, the prices have simply reached a level that is psychologically uncomfortable“, – said A. Izgorodin.

He believes that the rise in prices for this business is not related to the higher value added tax (VAT), which has increased from 9 to 21 per cent since January.

The analyst said that the beginning of a recovery in purchasing power is now visible, which has so far mostly affected the food segment, but is likely to spread to other segments as well.