Ravensburg gastronomy in need: Rigg's burger closes - 40 jobs lost!

Ravensburg gastronomy in need: Rigg's burger closes - 40 jobs lost!

Another heavy blow to the gastronomy: Rigg’s Gastro GmbH from Ravensburg filed for bankruptcy in July, which now resulted in the closure of her restaurant "Rigg’s Burger & Grill" on October 1st. A rescue attempt, accompanied by conversations with an interested buyer, was unfortunately unsuccessful. Over 40 employees who were employed in full and part-time are now there without a job. Insolvency administrator Michael Wahl from Pluta Rechtsanwälten has taken over the difficult situation and is faced with a significant decline in sales. The restaurant at Gottlieb-Daimler-Straße 2, which once offered 120 places, is particularly affected.

The background is complex. As reported by tagesschau.de, the gastronomy has experienced a massive decline since 2020. Around 48,000 companies had to close, and in 2023 every tenth company registered bankruptcy in the industry. The increasing cost pressure due to inflation and changed consumption behavior meant that fewer guests sit in restaurants and decrease the orders. Above all, the increase in VAT on food from 7 to 19 percent since January 2024 has further exacerbated.

Insolvents in the catering trade

The number of bankruptcies has increased dramatically in the catering trade. According to [Creditreform] (https://www.creditreform.de/aktuelles-wissen/Pressem reports-fachbeitrage/news-details/show/Krisengerchen-in-der-gastronomie-48000-closing-2020), the increases were even 27 percent, which is above the overall economy average. Small businesses are particularly badly affected: 88 percent of bankruptcies affect companies with up to ten employees, while 49 percent of bankruptcies are young companies that are a maximum of five years old. For the coming year, a persistent trend towards further increasing insolvencies will be forecast.

In Ravensburg, the Rigg’s restaurant was not alone with its challenges. The small catering operation in Tettnang, which has been temporarily closed since August due to road construction work, will probably not be reopened. A branch in Friedrichshafen had already been closed before bankruptcy. Interestingly, the Rigg’s Burger branch in Bad Saulgau is spared the bankruptcy, which probably indicates a different business model or more stable customers.

The current developments make it clear that gastronomy in Germany is facing a hard test. The wells of social life, the restaurants and pubs, suffer not only from the aftermath of Corona, but also from the economic reality of an inflationary phase that reaches many companies. Experts are concerned about the future of this industry and expect that the number of insolvency may exceed the level before pandemic in 2024.