As the initiator of the “Save Diversity” campaign, Kemal Üres campaigned against increasing VAT. Kemal Üres, gastro whisperer
Kemal Üres is not only a restaurant owner, the 46-year-old also advises other restaurateurs at his Gastro Business School. In an interview with Business Insider, he shared his advice to restaurateurs in light of the VAT increase.
Inflation, personnel costs, VAT: many restaurateurs in Germany are currently fighting for their existence. A Dehoga survey from autumn 2023 shows that around 89 percent plan to increase prices in 2024.
Gastronomy expert Üres assumes that “in the end everyone will have to set the prices again”. However, Üres advises against a “classic” increase. Rather, restaurant owners must first calculate their basic costs.
Kemal Üres has been running “La Paz”, a restaurant in Hamburg Eimsbüttel, for over 20 years. But for a few years now, guests have stopped coming just for tapas and wine. They want to see Üres, talk to him or, in some cases, take a selfie. Because: The “gastro whisperer”, as Üres also calls himself, is followed by several 100,000 people on Instagram and TikTok. In his videos, the 46-year-old explains how gastronomy works.
But like many restaurateurs in Germany, Üres is currently facing major challenges. As of January 1st, the VAT on food in restaurants was raised again to 19 percent – plus the inflation of the last few months. Many restaurant owners are therefore forced to increase their prices. The restaurant owner and gastronomy expert is sure that difficult times lie ahead for the gastronomy industry.
As part of his Gastro Business School, Üres advises other restaurateurs. He recommends that you take a closer look at their menu. Through so-called menu engineering, sales can be increased even without a “classic” price increase. But what does an optimized menu look like? The “gastro whisperer” explained this in an interview with Business Insider.
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Reduction in VAT “only absorbed part of the huge cost apparatus”
As part of the Corona measures, VAT was reduced to seven percent in 2020. Nevertheless, many restaurants across Germany have been fighting for survival in recent years. And this despite the fact that many restaurateurs have raised prices in recent years. There are mutliple reasons for this. In addition to inflation and increased energy costs, personnel costs also play a major role – if there are enough employees at all. During the pandemic, many skilled workers migrated to other industries. Kemal Üres also feels this in his own shop. The restaurateur reports that personnel costs have exploded. “35 percent is the absolute pain threshold – but no restaurateur who is not in the shop has that. We’re all at 50 percent.”
In addition, there is now also a renewed increase in VAT to 19 percent. According to Kemal Üres, the reduction at the beginning of the pandemic saved many companies, but “only absorbed part of the huge cost apparatus”. Sales in the industry are still well below pre-Corona levels. According to the Federal Statistical Office The catering industry recorded a decline in sales of 12.6 percent in September 2023 compared to September 2019.
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“The price structure is not right,” says gastro expert Üres, “which is why the concept is now completely collapsing.” However, the Hamburg native also sees an opportunity in this. Corona, inflation and war were accelerant for this development. “Whenever something breaks, it comes together again in a new era that is perhaps healthier.” But for that to happen, restaurateurs would first have to survive the next two to three years.
For many this means: Schnitzel etc. have to become significantly more expensive. One Survey by the German Hotel and Restaurant Association (Dehoga) from autumn 2023 confirms this. According to her, around 89 percent of the restaurants surveyed planned to increase prices in 2024. Kemal Üres is convinced that “in the end everyone will have to set the prices again”. However, he doesn’t mean a classic increase. Instead, he recommends a “smart menu”. The approach is by no means new; hardly anyone has used it so far. But how does it work?
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Raise prices – something many restaurateurs do wrong
Anyone who simply adds the missing twelve percent of VAT to their prices runs the risk of alienating their guests. But how do restaurateurs actually set their prices? As a rule, explains Kemal Üres, a contribution margin is calculated. In order to cover all costs, at least this amount must be reached. To do this you need “winning” dishes that run well. However, these should not be sold too cheaply. Otherwise, according to the restaurateur, they would no longer be “winners”, but rather “top sellers”. Food that is often sold but does not contribute to the contribution margin.