Running a profitable restaurant or bar has become increasingly difficult in recent years, according to the new Secretary General of HORESCA, Steve Martellini. He has just succeeded François Koepp, who spent 15 years at the helm of the Federation.
Despite the ongoing demand from customers, he emphasised that profitability margins have significantly dwindled, now averaging between 3% and 5%, compared to 12% to 15% a decade ago.
As a restaurant owner himself, with establishments in Wahlhausen and Hoscheid-Dickt, Martellini has experienced firsthand the challenges facing the industry. “Energy prices have skyrocketed. Products have become much more expensive; staff costs are going up,” he explained. If the electricity price cap is abolished and electricity prices jump by 60%, “we’re going to have even more problems,” the HORESCA Secretary General warned.
He highlighted the critical role of staff, noting the labour shortage prevalent in the hotel and catering sector, which often leads to businesses being forced to close for a day or two a week due to insufficient staffing.
Martellini also addressed the decline in the number of bars in Luxembourg (-8%) in recent years, attributing it to inadequate profit margins on beverages: “It’s 17 cents on a beer sold for €3.50.” Bar owners are struggling to get by without offering at least a selection of snacks in addition to drinks.
Martellini expressed cautious optimism about the future of the sector, acknowledging the government’s receptiveness to the sector’s concerns.
He emphasised the importance of the Federation’s role in providing support and advocacy for its members, outlining plans for increased accessibility and engagement with HORESCA stakeholders.
As part of his agenda as the new Secretary General, Martellini aims to foster greater collaboration and assistance for HORESCA members, including facilitating in-person consultations and conducting regular visits to member establishments to better understand their challenges and needs.
