Crisis in Vienna's catering industry: declining sales and a shortage of skilled workers threaten businesses

Crisis in Vienna's catering industry: declining sales and a shortage of skilled workers threaten businesses

Viennese gastronomy is currently struggling. During the summer months, many restaurants are under pressure due to unstable weather and a constant decline in sales. According to the Vienna Chamber of Commerce (WKW), the rainy July led to an average drop in sales of 10 to 15 percent. These losses can hardly be made up for the affected companies and not only cause economic worries, but also acute liquidity problems. The situation is further complicated by high inflation, which further drives up the costs of food, energy and rent. Despite the presence of numerous tourists in the city, the mood for shopping and enjoyment seems to be declining. There is no reason for hope in sight, as WKW expects such a development in the main season too. The catering industry urgently needs support and is called upon to attract more locals and guests to their establishments in order to improve the situation.

Lack of staff is a major issue

Another massive problem is the shortage of skilled workers. Qualified staff are sorely missed in the Viennese catering industry. The notices in hotels, restaurants and cafés show an urgent need for skilled workers. A current study by IW Cologne shows that there was a shortage of 8,800 skilled workers in June 2024, which is almost 45 percent less than the year before. Nevertheless, finding trained chefs, waiters and other specialist staff remains a major challenge. To date, one in four open positions has not been adequately filled, which not only affects the quality of service, but also leads to longer waiting times and overburdened existing staff.

What are the causes? Demographic change, unattractive working hours and high levels of stress scare off many potential employees. These precarious conditions require action: The industry must improve its working conditions and start with training in order to inspire more young people to pursue careers in the catering industry. Flexible working hours and attractive career opportunities could be the key here. Technological innovations such as digital ordering systems could also help relieve the burden.

Impact effects and future outlook

The economic consequences of the shortage of skilled workers should not be underestimated. Catering companies recorded a decline in sales of almost 11 percent in the first half of 2024 compared to the previous year, and profits even fell by 22 percent. The European Football Championship, which was hoped for an economic recovery, has in reality only led to further problems. In recent years, the number of bankruptcies in the industry has increased by a remarkable 27 percent, and 14,000 businesses have had to go out of business.

At a time when 29 percent of catering businesses are worried about their liquidity, the question arises: What happens next? With a clear focus on improving working conditions, targeted training and support programs and greater involvement of foreign skilled workers, the situation could stabilize in the long term. However, it remains to be seen whether the multiplication of all these challenges can be overcome.

The Viennese catering industry is not only faced with the challenge of maintaining operations, but also of creating an appealing environment for employees. It is important to improve the industry's image and increase its attractiveness in order to effectively combat the shortage of skilled workers. The road to improvement is long, but not impossible - with the right hand, Viennese gastronomy can perhaps hope for a better tomorrow.