Foodies, brace yourself: Dining out is becoming a luxurious treat for numerous Germans
Reduced Dining: National Restaurant Visits Decrease in This Nation
Indulging in your favorite restaurant's delectable dishes might soon be a rare extravagance for many Germans. A recent survey uncovers the reasons behind this unwelcome trend: restaurants are moving towards luxury items due to increased prices driven by inflation.
The favorite restaurant, now a coveted luxury
We've all experienced it: perusing the menu of your favorite restaurant, feeling your stomach growl, and then cringing upon seeing the sky-high prices. Gone are the days of spontaneous dining, as people now weigh the potential worth of treating themselves. Welcome to the era of a luxury dining experience for many Germans.
Since the onset of the Corona pandemic and the escalation of the Russian invasion in Ukraine, the cost of living has skyrocketed. This escalation doesn't stop at electricity and groceries but, alas, encompasses dining out as well. A survey conducted by the polling institute Civey reveals evidence of this financial blow: an astounding 80% of respondents report dining out less frequently due to the price hikes. For these individuals, a restaurant or café visit is no longer an everyday pleasure but an occasional indulgence.
Minimum wage on the rise, even leisure activities feel the squeeze
However, it's not just the inflated prices themselves that act as a deterrent. According to the survey, 37% of respondents confess their dwindling financial stability prohibits regular dining out excursions. Additionally, 22% claim to face subpar service or low quality—likely the consequence of cost-cutting measures forced upon the industry due to inflation. Even the relaxation of cooking at home seems to hold appeal for 14% of those surveyed.
According to another survey by the price comparison portal Idealo, individuals are currently at the mercy of their belts, tightening them in the areas of clothing, accessories, and restaurant visits. Half of respondents are now making budget-conscious choices in these sectors. Dining out is no longer a given for many people but a carefully thought-out, luxurious splurge.
Overview: The perfect storm of inflation, cost increases, and consumer behavior
Inflation has impacted the cost of eating out, as Germany struggles with sustained rises in food and service prices. Despite the overall moderation in inflation due to lower energy costs, the persistent increases in these categories have made restaurant dining more expensive, transforming it into a luxury for many Germans. This shift in consumer behavior corresponds with reduced dining-out frequency across the nation.
Personal-finance concerns are causing some Germans to reconsider their dining-out habits, with 80% reporting they dine out less frequently due to price hikes. Economic and social policy, particularly minimum wage rises, might not offset the squeeze felt in leisure activities like food-and-drink, leading many to make budget-conscious choices and view restaurant visits as personal-finance luxuries.
