Bars and restaurants are bracing for higher costs this year. The challenge of passing along rising expenses for raw materials, energy, and wages has put the horeca sector (hotels, bars, and restaurants) in a tight spot. The 19th Horeca Congress organized by Aecoc, held in Madrid this week, became the stage for frank observations and concern. More than 450 horeca professionals gathered to acknowledge that the road ahead will be complicated and competition will be fierce. In his keynote, Jordi Gallés, chair of the Aecoc horeca committee and head of the Europastry group, spoke of a sharp rise in costs and the erosion of consumer purchasing power after a strong summer. The discussion offered a quick snapshot of the pressures weighing on business life, including high electricity bills and other hidden costs borne by customers.
The core issue lies in updating prices to reflect past and anticipated cost increases. Gallés noted that while the overall consumer price index rose 10.5% in August, the hospitality segment lagged by four points. Financial relief through tax measures is a shared goal across industries, and horeca is no exception. Even a temporary VAT reduction is being sought by horeca and distribution channels. Food producers are also calling for VAT relief. The consensus on this front is notable. Limiting price baskets has moved from a policy goal to a communicative strategy and a practical consideration for operations.
Recovery
Sponsored by the organization that connects producers with distributors, the congress underscored the health of the Spanish horeca sector following a period of disruption, buoyed by strong tourism, robust domestic demand, and favorable consumption patterns. The recovery of the hospitality industry after the health crisis merits ongoing analysis. In the past year, the hotel sector has created more than 182,000 jobs and stood out as one of the few areas to increase employment in August. Overall, it demonstrated surprising resilience and acted as an important economic engine.
Sustainability and digitalization remain on the agenda for sector leaders, though current uncertainties may temper their pace. Even so, the congress reinforced a sense of confidence. Benchmarking firms report sustained sales and the looming risk of a recession remains a concern for many observers.
Francesc Cosano, managing director for Coca Cola Europacific Partners Iberia, noted that the company exceeded expectations this year, largely due to the return of roughly 90% of international visitors compared with 2019. The firm anticipates a year-end that could reach levels seen before the pandemic, with solid consumer demand despite inflation and a lack of clarity about the next year.
Alberto Rodríguez-Toquero, managing director of Mahou San Miguel, remarked that a delayed decline in consumption might occur in September, and he projected strong prospects for the Christmas season because last year’s horeca activity was curtailed by Omicron, a disruption not expected this year.
Óscar Vela, CEO of Areas, examined the horeca situation along highways and railway hubs, where activity is already above pandemic-era levels, while airports are proving the hardest hit. He emphasized improved traffic anticipated into 2024 and the continued challenges facing travel hubs as a key market dynamic.