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Victoria Mindova

“The drop in Greek restaurants’ turnover has reached 70% compared to 2009 levels”, said the Secretary of the Hellenic Restaurant Federation, George Kavathas, to GRR reporter. "The average decrease in turnover in the sector is 40%, but the reduction varies with the differences in geographic characteristics. In the municipality of Grevena, to which there is no serious tourist flow, and other similar areas the decline reaches 70%," said the entrepreneur. The increased tax burden that comes along with higher VAT has severely hit the restaurant business like many other economic sectors. It has gone through a dramatic metamorphosis and from a modest 9% three years ago, almost a quarter of the bill in the Greek taverns, or 23%, goes to the treasury in the form of value added tax, not to mention the other obligations to the public sector.

The turnover drop in the catering industry is due not only to the average impoverishment of the Greeks, but also to the change in attitude of all users. It directly affects jobs in the sector and has an extremely negative impact on farmers who cannot sell their goods domestically and are unable to export abroad. The restrictions imposed by the economic crisis affect the whole chain from the producer to the end consumer. An owner of a small chain of restaurants in the area of ​​Attica explained that until recently 80% of the restaurants’ turnover had been going back to farmers who are the main suppliers of raw materials in the sector. The other 15% are costs for staff salaries, and about 5% remains in profit, which is often reinvested in the business.

The tourist flow, which this year marked a 10-per cent increase did not bring a greater increase because of the general mood due to lower costs. "The biggest problem proved to be in the All Inclusive services. Taverns and restaurants in the area of ​​Halkidiki and Crete, Kos, Corfu, Rhodes, proved to be serious victims of this type of tourism. Despite the high quality of service and the food they offer they have failed to benefit from the increased foreign tourists flow," explained Kavathas.

The overall effect of the crisis has proved "fatal" for about six thousand restaurant entrepreneurs, which now account for about 6% of all businessmen in the sector. The Secretary General of the Federation has no vain expectations and does not expect a positive change in the economic conditions in the country: "What we will see in the near future, both as a result of the measures in the austerity plan and the additional measures, will generate additional losses for the sector." The obvious poverty of the average Greek, the change in the profile of tourists in Greece as well as the higher direct and indirect taxes do not help towards the recovery of turnover losses of restaurants. 
 
To top it all, tourism-related companies have to deal with problems caused by the constant strikes and protests. In Athens, the biggest blow is to taverns and restaurants in the centre and around archaeological sites. "I am sure that the right to protest of all social groups should not affect the quality of tourist services. This is a key sector for the country and the revenue from it directly affects the quality of life in Greece. High taxes affect all sectors. We all do what we can to survive. VAT alone has jumped by 76% over the past three years. Restaurants have taken on this difference and today we are working at zero profit to endure until better times come."