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Sausalitos on the verge of extinction: wave of closures hits branches across Germany!
Wolfsburg experienced the closure of the Sausalitos branch due to the bankruptcy filing, lack of investors and declining guest numbers.
Sausalitos on the verge of extinction: wave of closures hits branches across Germany!
Gastronomy in Germany is facing a massive challenge, and the well-known restaurant and cocktail bar chain Sausalitos has not been spared. As fr.de reports, the company is already proposing major closures that will have a deep impact on the gastronomy scene.
On June 29, 2025, numerous branches in cities such as Cologne, Düsseldorf, Hamburg and Berlin were closed. Another regrettable step followed on July 7, 2025, when the branch at Heumarkt in Cologne closed its doors. The locations in Dortmund must also close by the end of July, reducing the number of remaining branches to just 17 listed on the Sausalitos website. A spokesman for the insolvency administrator, Sebastian Brunner, emphasizes that these closures are unavoidable due to ongoing losses.
Filing for bankruptcy and gradual bankruptcy
Meanwhile, Sausalitos has filed for bankruptcy, as br.de reports. Since the Corona pandemic, the chains have felt a noticeable decline in the number of guests, which, combined with years of weak economic activity in Germany, led to this dramatic decision. Provisional insolvency administrator Michael Schuster states that the wages and salaries of over 1,000 employees are secured through insolvency money until the end of May, but the future remains uncertain. The goal is to find an investor as soon as possible to continue the business. While some franchisee locations are not directly affected, the overall brand image is suffering from the developments.
Industry crisis and challenges
Sausalitos' problems are not isolated. As tagesschau.de reports, around 48,000 catering establishments have closed since 2020, and 2023 alone brought 14,000 closures, which is putting a heavy burden on the industry. The increase in VAT to 19 percent for food from January 1, 2024 further complicates the situation. Many restaurants, including Sausalito's, have not been able to reach sales levels from before the pandemic to today.
In-depth analyzes show that small companies in particular are severely affected. 88 percent of bankruptcies affect small businesses, while very few large chains are able to withstand this crisis. In response, many restaurateurs took advantage of government aid during the lockdowns to temporarily stay afloat, but this support cannot permanently eliminate the uncertainty prevailing in the industry.
Given these shocks in the gastronomy industry, one wonders: Will Sausalitos manage to find a new investor and how will Berlin's gastronomy scene develop as a whole? Despite current developments, these questions remain open and leave room for speculation about the future of the popular gastro chain and the entire industry.