Top Michelin-star restaurants in the German capital are closing down. Still suffering a change in public preferences since the pandemic and uncertainty over the direction of the European economy, customers who previously dined at he best restaurants are eating elsewhere.
In two months from now, Berlin’s 5th Michelin-starred restaurant will serve its last dish following a string of other top restaurant closures. The popularity of fine dining appears to have passed its peak as foodies prefer to spend more frugally in Germany these days.
German VAT increases blamed for decline of top restaurants
One of a cluster of elements claimed to be leading to the closures has been a hike in VAT imposed on restaurants by the German government in 2024 from 7 to 19%. Another has been runaway inflation just after the pandemic, complicating recovery. Declining tourism has also been cited as a contributory cause, as well as wars and subsequent supply-chain unsteadiness.
Some of the top restaurants have been responding by offering lower-cost menus as a way of luring new customers, especially those of a demographic not accustomed to Michelin-Starred service. But the sudden price increases in German restaurants as a direct response to VAT increases gave the restaurant industry a bad name. Despite hosting the European cup this year and Berlin receiving masses of visitors to watch the matches, the top Berlin restaurants saw little increase in their clientele.
Part of a worrying trend for top restaurants
According to the Michelin guide, this may be part of a worrying trend for the industry. ‘In Northern Europe the number of Michelin-Starred restaurants open for business is down by three-quarters – from 74% to 18% – while Southern Europe records a smaller drop from 66% to 40%,’ the guide says.
