Ravensburger gastronomy in distress: Rigg's Burger closes - 40 jobs lost!

Ravensburger gastronomy in distress: Rigg's Burger closes - 40 jobs lost!

Another serious blow for the catering industry: RIGG’S Gastro GmbH from Ravensburg filed for bankruptcy in July, which resulted in the closure of its restaurant “Rigg’s Burger & Grill” on October 1st. A rescue attempt, accompanied by discussions with an interested buyer, was unfortunately unsuccessful. Over 40 employees who were employed full-time and part-time are now without a job. Insolvency administrator Michael Wahl from Pluta Rechtsanwälte has taken over the difficult situation and is faced with a significant decline in sales. The restaurant at Gottlieb-Daimler-Straße 2, which once had 120 seats, is particularly affected.

The background is complex. As tagesschau.de reports, the catering industry has experienced a massive decline since 2020. Around 48,000 businesses had to close, and in 2023 one in ten companies in the industry filed for bankruptcy. Increasing cost pressure due to inflation and changing consumer behavior led to fewer guests sitting in restaurants and orders declining. In particular, the increase in VAT on food from 7 to 19 percent since January 2024 has further aggravated the situation.

Bankruptcies in the catering industry

The number of bankruptcies in the catering industry has increased dramatically. According to Creditreform, the increases between 2022 and 2023 were 27 percent, which is above the overall economic average. Small businesses are particularly hard hit: 88 percent of insolvencies affect companies with up to ten employees, while 49 percent of insolvencies are young companies that are five years old or less. A continuing trend towards further increases in insolvencies is forecast for the coming year.

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

Current developments make it clear that the catering industry in Germany is facing a tough test. The fountains of social life, the restaurants and bars, are not only suffering from the aftereffects of Corona, but also from the economic reality of an inflationary phase that is pushing many businesses to their limits. Experts are concerned about the future of this industry and expect that in 2024 the number of bankruptcies may exceed pre-pandemic levels.