Emergency situation

Emergency situation

The pace of small business closures in the food service industry continues to increase.

The current economic situation, which is expressed in rising inflation and rising electricity prices, forces owners of small businesses in the catering industry to take radical steps in the form of closing their businesses. This applies to small restaurants, bakeries and pastry shops located in both small and large Polish cities.

The secretary general of the Chamber of Commerce of Polish Gastronomy (IGGP) warns that the catering industry is currently in a weak condition. He points out that the situation is much worse than in the era of the coronavirus pandemic. He also warns that we are beginning to deal with a loss of financial liquidity and a growing wave of bankruptcies. At the same time, he points out that the reduction of VAT on all catering products would be a great support for the sector.

Experts indicate that the vast majority of all existing companies are small businesses employing about 7 million people. Their gradual but systematic closure will further deepen the already difficult economic situation. It will contribute to a significant increase in the level of unemployment, and then to economic migration. As a result, some regions will be deserted.

Source: https://www.money.pl/gospodarka/jest-naprawde-powaznie-knajpy-cukiernie-piekarnie-zegnaja-sie-z-klientami-6856953723767712a.html

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