In Latvia, some caterers have reported a turnover decline of 10-30% in the first two months of the year compared to the same period last year due to various economic pressures.
In the first two months of this year, some caterers in Latvia experienced a significant decline in turnover, ranging from 10% to 30% compared to the same period in 2022, as reported by JΔnis Jenzis, the head of the Latvian Restaurant Association (LRB). This downturn is attributed to several factors, including a low number of tourists, cold weather, rising energy costs, and the impact of inflation. Jenzis highlighted the urgent need for governmental intervention and support measures to assist struggling businesses in the sector.
Furthermore, he pointed out that some caterers have already closed their establishments early in the year, creating a challenging landscape for the industry. The situation is particularly difficult for rural caterers, and the outlook for March appears grim, as the lack of tourists is expected to persist. Jenzis noted that the ongoing economic challenges necessitate active government involvement to prevent further closures of restaurants and cafes in the near future.
On a different note, Jenzis commented on the growth of fast food businesses in Latvia, indicating that these companies tend to fare better during crises compared to lifestyle restaurants and cafes. This discrepancy underscores the need for a targeted approach from the government to support various segments of the catering industry and ensure its sustainability as the country navigates these economic challenges.
