Germany's gastronomy sector faces widespread closures and insolvencies

The German gastronomy industry is experiencing a significant wave of business closures and insolvencies. Data from Creditreform indicates that between 2020 and 2025, approximately 69,000 gastronomic enterprises ceased operations. In 2025 alone, roughly 2,900 companies filed for insolvency, representing a 29.6 percent increase compared to the previous year.

Industry operators are struggling with a combination of high energy, personnel, and food costs alongside declining revenues. In August 2026, real gastronomy turnover fell by 5.4 percent compared to the previous year. Smaller, owner-operated businesses are particularly vulnerable due to limited financial reserves. In Bavaria, insolvency proceedings in the hospitality sector rose by 47.7 percent in 2025.

While some new establishments are opening in specific areas like Konstanz, the broader trend shows a loss of traditional meeting points, jobs, and orders for regional suppliers. Some operators are attempting to attract customers through low-cost all-inclusive buffets, though this strategy carries additional economic risks.