Spain’s bars face a notable decline even as overall hospitality shows resilience
Bars still outnumber other drinking and dining formats, but the downward drift is unmistakable. Official figures indicate that Spain began 2023 with 168,065 operating bars, about 7,800 fewer than at the same point in the previous year. The drop translates to roughly 4.4 percent fewer liquor establishments, a pace of decline that exceeds the losses seen in 2020 and marks the sharpest contraction in a decade.
Spain’s National Institute of Statistics monitors hospitality data, and the country’s major restaurant and bar association released its 2023 Yearbook this week. The report portrays an industry only gradually recovering from the pandemic, with the early 2023 numbers reflecting a still challenging environment for new openings even as improvements become visible in other areas of the sector.
The contraction in bar openings traces back to 2010 when the data sample covered about 200,000 establishments. Analysts describe a natural evolution in the sector where consumers seek varied formats and operators respond with new kinds of venues. The hospitality sector notes that many bars closed while alternative dining and drinking concepts emerged to meet shifting preferences.
In a surprising turn, the downturn extended to food businesses as well. On January 1, 2022 there were 83,800 restaurants, a 4 percent rise from the year before; by January 1, 2023 the tally stood at 82,900, signaling a 3 percent year over year decrease across the overall food and beverage service segment. The latest balance sheet shows about 270,600 Spanish owned food and beverage establishments, a 3 percent drop from the prior year.
Inflation left a mark on 2022 as costs weighed on both firms and households. José Luis Yzuel, president of the association, notes that the sector rebounded toward pre pandemic levels in 2022 but faced the Ukrainian crisis and broader economic pressures. Rising energy prices and higher costs for raw materials also weighed on profitability, shaping expectations for 2023.
More turnover, a brighter balance
Despite the mix of closures, the tone remains cautiously optimistic. The accommodation segment expanded with about 3 percent more hospitality companies at the start of 2023. Total revenue for 2022 rose, reaching roughly 90.7 billion euros for restaurants and 32.16 billion euros for accommodation. Profitability and overall earnings trended upward even when the number of active businesses did not match earlier peaks.
Restaurant and bar turnover in January rose by about 20 percent compared with the previous year. Through September, the average income increase hovered around 9.2 percent. Market observers point to a shift toward higher value, higher spending activity from consumers, a trend reinforced by inflation and rising menu prices. Analysts emphasize that the sector is steering toward more resilient business models that attract customers with stronger purchasing power.
Looking at the full year, 2023 is viewed as a recovery year approaching pre pandemic normality in many metrics. Some clients are not facing a severe consumer crisis within the current economic context, and many firms have begun revisiting income statements to restore profitability and sustain growth in a demanding environment.
Looking ahead, the central question is whether the industry can sustain peak demand and continued growth. In a favorable scenario, steady household disposable income and solid financial performance would support ongoing development in hospitality. Yet risks remain, including trends in employment, the possibility of rising interest rates, political instability, and price movements, all of which could influence demand and the performance of accommodation businesses in the coming year. The sector will monitor these factors closely as it plans for the year ahead.
In Canada and the United States, observers note that similar patterns of recovery are taking shape in related hospitality sectors, with cautious growth tied to consumer confidence and inflation dynamics. Analysts stress that strategic shifts toward higher value offerings, stronger branding, and tighter cost controls will be crucial in maintaining momentum as markets navigate shifting macroeconomic conditions.