Industry revenue of restaurants and mobile food service activities in Greece 2011-2023
Greece is starting to recover from the decade long financial crisis, which almost crippled its economy on every possible front during 2009-2018. However, the road to recovery is fraught with challenges and the country faces a long and hard battle to achieve its pre-crisis growth rate. In fact, the national debt is still running over 150% of the GDP, and at this rate, the country will be able to repay all its debts only by 2060. This situation has had an adverse impact on most industries including restaurants and home delivery, with revenues expected to decline over the next few years.
Austerity measures led to a decline in industry revenue
Greece has received a bailout package of more than 300 billion U.S. dollars, which in turn has resulted in the implementation of various austerity measures, including a pay freeze for all public sector workers, an end to early retirement, a cut in pensions and a rapid shift to privatization. These measures have had a direct impact on the business confidence of both the manufacturing and services industries in the country. Revenues from the restaurant and mobile food services industry declined from 4.4 billion U.S. dollars in 2011 to almost 3.6 billion U.S. dollars in 2018, a near 20% fall. The household consumption expenditure on restaurants and hotels is still below the 2008 mark.
The decline in population and an increase in taxation to restrict industry growth
Moreover, the rise in the VAT rate from 17% to 24% that was implemented in 2017, together with the excise taxes imposed on beer and wine is likely to have an adverse impact on the industry in the short to medium term. In fact, according to the latest estimates by Statista, the revenues from the industry are likely to decline further, dropping to around 3.1 billion U.S. dollars by 2023. A decline in population growth and an aging population are likely add to the nation’s existing worries.
Austerity measures led to a decline in industry revenue
Greece has received a bailout package of more than 300 billion U.S. dollars, which in turn has resulted in the implementation of various austerity measures, including a pay freeze for all public sector workers, an end to early retirement, a cut in pensions and a rapid shift to privatization. These measures have had a direct impact on the business confidence of both the manufacturing and services industries in the country. Revenues from the restaurant and mobile food services industry declined from 4.4 billion U.S. dollars in 2011 to almost 3.6 billion U.S. dollars in 2018, a near 20% fall. The household consumption expenditure on restaurants and hotels is still below the 2008 mark.
The decline in population and an increase in taxation to restrict industry growth
Moreover, the rise in the VAT rate from 17% to 24% that was implemented in 2017, together with the excise taxes imposed on beer and wine is likely to have an adverse impact on the industry in the short to medium term. In fact, according to the latest estimates by Statista, the revenues from the industry are likely to decline further, dropping to around 3.1 billion U.S. dollars by 2023. A decline in population growth and an aging population are likely add to the nation’s existing worries.
