Tax cuts bring little savings: restaurants continue to struggle!

Tax cuts bring little savings: restaurants continue to struggle!

On January 1, 2026, the reduction in VAT for food in the catering industry from 19% to 7% came into force. This measure was seen by many restaurateurs as overdue and could actually provide relief. But what is the reality in Königs Wusterhausen? Despite this tax cut, price developments here remain stable, while food prices, energy costs and rents continue to rise. This is what the site reports moz.de.

The catering industry is in a difficult situation. Restaurateurs are increasingly relying on catering and delivery services to increase their sales. Stjepan Grgić, a waiter at Osteria Foria, notes that the tax cut has little impact on prices, as other costs such as those for pork neck steaks, which rose from 2.50 euros to 10 euros, have a strong impact. In addition, platforms like Lieferando charge up to 35% commission, which further reduces the profit margin.

The tax cut: A double-edged sword

Despite the tax cut, restaurateurs are optimistic about the year 2026. According to BR.de 86.3% of companies expect positive effects on their business situation. Prime Minister Markus Söder (CSU) supports the measure due to increased costs in the industry, while critics from the Left and the Greens brand them as economically senseless tax gifts. Gregor Lemke, landlord of the “Augustiner Klosterwirt”, states that lower prices are not to be expected on the menu. Rather, the aim is to avoid price increases.

But not everyone sees the tax cut as a helpful measure. Sebastian Gellrich, owner of the Sophien-Stübchen, complains that the VAT on drinks remains at 19%. He plans to keep his menu small and concise and will use digital tools for online reservations and ordering to optimize his service. Gellrich also relies on alternative sources of income such as delivery services and the “Too good to go” app.

The numbers speak for themselves

As of December 31, 2025, a total of 98 dining establishments were registered in the Königs Wusterhausen trade office. In 2025, there were 16 new registrations, but also 10 deregistrations, which illustrates the challenges facing the industry.

The NGG union is skeptical and does not expect prices to fall, but rather an improvement in profit margins at fast food chains. This is supported by the Dehoga survey from July 2025, which shows that only 51.6% of establishments see positive effects on the price-performance ratio for guests. If the tax cut were actually a panacea, restaurateurs would be in a better position now - but for many it is still a matter of remaining creative and adapting to the new circumstances.