Recent analysis from Iberinform, a business analytics unit within Atradius Crédito y Caución, highlights notable risk signals in the Spanish catering sector. The data show that near half of catering firms in Spain face at least a high risk of default, with 49 percent flagged nationwide and the Alicante region at 35 percent on the higher end of the risk spectrum.
The report also reveals that a portion of the sector maintains relatively low risk, while a sizable share sits in the medium risk category. Specifically, about one in five companies demonstrates low to very low risk, and roughly one third operate within a medium risk band, mirroring figures from the prior year and illustrating a cautious continuity in sector health.
Geographic dispersion of risk is uneven. The largest deteriorations are concentrated in certain provinces where a larger share of firms show elevated exposure. Malaga records the highest concentration of high or maximum risk, affecting a plurality of firms, followed closely by Madrid and Seville with similar levels, then Barcelona and Valencia, with the latter two showing substantial but slightly lower incidence. The Balearic Islands and the Alicante region also report notable risk concentrations, although at lower absolute levels than the top five provinces.
Industry density matters for interpreting these results. Madrid and Barcelona are the two provinces with the densest cluster of catering businesses, underscoring the link between firm concentration and observed risk patterns in these areas.
Beyond the major hubs, the provinces with the next-largest numbers of catering entities include the Balearic Islands, Málaga, Alicante, Valencia, and Seville. In these areas, the overall credit risk tends to run above average in several of the provinces, reflecting network effects and local market dynamics that influence liquidity and payment behavior.
There is an evident inverse relationship between regional distribution and credit risk. In provinces with fewer catering establishments, risk levels have declined significantly in recent years, with Palencia, Teruel, and Soria showing the most pronounced reductions. In these places, only a minority of firms report high or maximum risk, signaling a more favorable local credit environment.
The catering landscape in Spain is highly atomized, characterized by a large number of micro- and small-scale operators. Only a small fraction of firms reach the small-to-medium enterprise category, and the majority remain micro or small in size. This structural setup contributes to the sector’s vulnerability but also to its resilience, as a broad base of small operators can adapt quickly to changing conditions.
Size distribution within the sector shows that roughly a quarter of firms are small, while about seven in ten are micro-enterprises. These proportions influence risk assessment, cash flow planning, and the ability to withstand economic shocks, especially in a market sensitive to tourism and local demand fluctuations.
A relatively small share of firms, around one in five, manages to cross the credit threshold that marks more stringent financial exposure. Among these larger firms, roughly a quarter still report high or maximum risk, indicating that size alone does not guarantee insulation from credit pressure.
In the last decade, the risk profile has shifted further upward in firms established within the past ten years. About sixty percent of the total catering establishments fall into this category, and these newer companies exhibit a higher tendency toward elevated credit exposure, underscoring the evolving risk landscape in newer market entrants.
Source notes: The figures derive from Iberinform, the analytics arm of Atradius Crédito y Caución, and reflect sector dynamics observed across Spanish regional markets. These insights help stakeholders gauge liquidity, payment behavior, and the potential default risk facing various tiers of catering businesses.
Source: Iberinform.