Estonia sees closure of iconic restaurants amid debt and market strain

Two well‑known eateries in Estonia have shut their doors as mounting tax debts and a sharp fall in profit margins squeeze the restaurant sector. A summer‑opened Tallinn restaurant, originally launched by chef Joonas Koppel, has entered bankruptcy after a dispute with partner Mati Luh and accumulating tax liabilities. New investor Hannar Haabmets plans to continue operations while leaving the old debts behind.

Meanwhile, the celebrated Tai Boh on Viru Street announced a permanent closure. Owner Sten‑Erik Jantson cited a confluence of high taxes, inflation, reduced consumer spending and a three‑fold drop in sector profit margins, which have forced more than 25 restaurants to close across Estonia in the past year. The shutdown is expected to result in job losses and further stress on the capital’s dining scene.