Insolvency drama in Ravensburg: Rigg's Burger closes, 40 jobs gone!

Insolvency drama in Ravensburg: Rigg's Burger closes, 40 jobs gone!

In Ravensburg, RIGG’S Gastro GmbH has closed an inglorious chapter: The catering company, known for its restaurant “Rigg’s Burger & Grill” and a small restaurant in Tettnang, filed for bankruptcy in July. Despite all the efforts of the insolvency administrator Michael Wahl from Pluta Rechtsanwälte to save the company, talks about a takeover remained unsuccessful. On October 1st, operations were finally stopped after alternative solutions were lacking.

As a result of the closure, over 40 full- and part-time employees lost their jobs, further exacerbating the already tense situation in the catering industry. RIGG’S Gastro was not only known for its location at Gottlieb-Daimler-Straße 2, but also for the popular food trucks that were used at numerous events.

Economic challenges for the catering industry

The decline in sales in recent months was not only due to the specific circumstances of RIGG’S Gastro. The entire catering industry in Germany is struggling with considerable difficulties. In 2023, one in ten catering companies went out of business, and a total of around 48,000 companies have filed for bankruptcy since 2020. The study by the credit agency Creditreform shows that the number of closures this year, at 14,000, is already higher than in the previous three years, but is below the level before the corona pandemic. Experts predict that this industry will continue to thin out, not least due to rising food prices and a shortage of staff.

The changes in people's consumer behavior that accompany the economic situation are obvious. Fewer and fewer people are visiting restaurants and ordering less often. According to Wahl, half of RIGG'S Gastro's sales came from the delivery business, which underlines the trend. The catering establishment in Tettnang has also been temporarily closed since August and there are no plans to reopen.

The future of gastronomy is in the balance

The situation is further exacerbated by the increase in sales tax for food to 19 percent from January 2024. This puts a strain on catering businesses, which are already suffering from the after-effects of the corona pandemic and inflation. Ingrid Hartges, general manager of DEHOGA, describes the situation as “bitter” and speaks of personnel costs having risen again. 88 percent of insolvencies also affect small businesses with up to ten employees, which underlines the vulnerability of these companies.

Insolvency cases are expected to rise to pre-pandemic levels in 2024, with experts estimating that more than 15,000 catering establishments in Germany are at risk. With its insolvency, RIGG’S Gastro GmbH is another sign of the challenges facing the catering industry in Germany. The industry urgently needs innovative solutions and support in order to survive in these difficult times.

For the regional employees and guests of the restaurants, the focus is now on looking for new opportunities and perspectives in a changing gastronomic landscape.

Swabian newspaper reports that RIGG’S Gastro GmbH from Ravensburg filed for bankruptcy in July. Loma Zoma adds that talks about a possible takeover have failed and that the decline in customer frequency is also related to road construction work. daily news highlights the widespread crisis in the catering industry and the high number of insolvencies, which particularly affect small businesses.