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According to the CafetierSuisse association, many cafes could close next year. If the restrictions due to the corona pandemic continue as before, a wave of bankruptcies could be expected. And to make up for the drop in sales, the coffees should also increase their prices significantly.
“There must be fear that coffees will die across Switzerland,” CafetierSuisse president Hans-Petter Oettli said at the association’s annual online press conference on Monday. For many catering establishments, especially the smaller cafes with few seats, the situation remains extremely tense due to restrictions due to the corona pandemic, he said, calling on politicians to act.
Measurements are not enough
Measures such as the extension of compensation for reduced hours or the hardship clause would be recognized, “but they are not enough.” Among other things, he criticized the rejection of the Commercial Income Law in the National Council and the Council of States, which had created more uncertainty for the industry. “The Federal Council and parliamentarians must be aware of the consequences that their decisions have for our industry,” said Oettli.
It is not known how many companies were able to reach a private agreement with their owners. However, CafetierSuisse managing director Julian Graf said that surveys across the catering industry had shown that around 40 percent of employers could not agree on a rent reduction with their landlords.
If further restrictions cannot be avoided for epidemiological reasons, the association demands prompt compensation payments. “It affects not only economically unstable companies, but also those that have operated sustainably,” Oettli emphasized. But its reserves have now also been depleted and there is the threat of a bankruptcy wave that would also put 100,000 jobs on the line.
Currently still minor effects
In the current year, however, the effects of the crown crisis were still limited. About 5 percent of members left the association due to bankruptcy, CafetierSuisse managing director Graf said. However, these bankruptcies occurred for various reasons and not just because of Corona. “There are always bankruptcies in the restaurant industry,” says Graf.
However, now would come the decisive months for many companies. According to Oettli, it is not yet possible to determine which companies are showing the greatest resistance to the crisis. An evaluation will only be possible in spring 2021, according to the president of CafetierSuisse. However, after the first closure in the spring, it became clear that the cafes that are very popular with their customers recovered faster and returned to full tables, Graf said.
The average price of a cup of coffee is increasing
According to the association, prices for a cup of coffee are likely to rise at the same time that the coffee dies. If restrictions persist, a coffee creamer could cost up to 10 percent more in the next year than it does today. This should compensate the coffees for their drop in sales, as Oettli said.
A cup of coffee was already three cents more expensive in 2020, as a survey by CafetierSuisse shows. On average, a cup of crème coffee currently costs 4.25 francs. According to Graf, the fact that the price has risen has nothing to do with the crisis, rather it is a natural fluctuation. Last year, the price per cup fell 3 cents for the first time since the survey began, so the price in 2020 will return to the level of two years ago. On the other hand, the price effects of the corona pandemic are unlikely to become apparent until next year, according to Graf.
According to Graf, slightly more than three-quarters of the sales price for wages, rents and material costs is lost per cup. An average of about 10 percent is used for garnishes like sugar or dishes. “The quantity of coffees sold has to be very high, otherwise, depending on the concept, this has serious consequences for a store,” says Graf.
