People in Germany are more often opting for fast food over restaurant meals, according to Hase & Igel, an AI-supported data analysis company.

Fast food vendors winning customers as restaurants take a hit

According to the Hase & Igel analysis reported in Wirtschaftswoche magazine, more people in Germany are choosing to eat out at fast food eateries rather than restaurants, when they do decide to eat out.

This doesn’t just mean that international companies such as McDonald’s or Burger King are seeing more customers, but also Germany’s cheap Döner and Asia Imbisse. On the other hand “Italian, Spanish and Indian restaurants are seeing losses in the mid-double digit percentage range,” said Hase & Igel Managing Director Jan Schoenmakers.

In January 2024, the German government raised VAT at cafes and restaurants from 7 percent back up to 19 percent. The 7 percent VAT rate was initially introduced in response to the coronavirus pandemic, which left many businesses struggling amid months of enforced closures. The cut was then extended to the end of 2022 as inflation soared due to the rising cost of energy.

Delivery apps in Germany are also seeing a decline

Sit-down restaurants aren’t the only ones in the German hospitality industry to have been affected by inflation and the recently raised VAT rate.

According to the study, food delivery apps are also seeing a decline in customers, after they were the “rising star” of the pandemic. In comparison to last year, delivery apps in Germany saw an 18 percent decrease in customer search queries.

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