Dramatic situation in the hospitality industry: every fourth business is about to end

Hanover – Short-time work and the out-of-home business will not save them either …

The corona crisis leads restaurateurs into existential distress. According to the industry association Dehoga, every fourth restaurant and hotel in Lower Saxony is about to go out of business in the corona pandemic.

The situation in the hospitality industry is dramatic, said Rainer Balke, managing director of the German Hotel and Restaurant Association of Lower Saxony, the “Hannoversche Allgemeine Zeitung” (Wednesday). “It is a hopeless situation, we need an open perspective.” Around three quarters of the companies have existential difficulties, the last resources have been used up: “You are on the cliff and are about to crash.”

The longer the restaurateurs have to wait for the opening, the harder it will be for the establishments, warned Balke. According to the association, there are around 20,000 restaurants and bars nationwide.

In November 2020 they had to close for the second time in the Corona crisis. The out-of-home business does not save them: “That is an extra business and only reduces the losses.”

The industry has not yet seen a sharp rise in unemployment, said the chief executive. Many of the around 100,000 employees subject to social security contributions are on short-time work.

According to the report, another 100,000 people in Lower Saxony were marginally employed in hotels and restaurants before the Corona crisis; they are not entitled to short-time work benefits.


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