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Bars and restaurants continued to have a negative year in 2021, although restrictions were eased and economic activity revived.
According to INSTAT business register data, in 2021, 854 food and beverage service activities were closed, down 5.2%.
About 15,500 bars and restaurants operate in the country, from 22 thousand in 2015, being the second most preferred activity in the country, after the retail trade business.
The representative of the Association of Bars and Restaurants Enri Jahaj contacted by “Monitor” said that the closure of these structures has been affected by the pandemic.
The association warns that the number of closed businesses will increase in 2022, due to declining consumption from the general crisis of rising prices and labor shortages.
“Bars and restaurants were the first to close at the start of the pandemic. The drop in quarantine turnover and the constraints on the economy would certainly have these effects. With the crisis that has plagued and with the increase of raw material costs and the reduction of consumption, there will be other closures of these structures.
The sector is also facing another crisis, that of labor shortage. Many bar and restaurant entities find it difficult to find new employees. Even the few employees left in the country demand high pay. This situation will further complicate the activity of these structures. Closures will continue in 2022 “pohaon Jahaj.
The increase in costs is expected to be reflected by these entities in the increase in product prices. It was previously stated by the Association of Bars and Restaurants that price volatility will be temporary, as businesses will no longer be able to bear the cost of price increases. The cost of informal businesses is also amortized by businesses that operate regularly.
For 2022, the decline in consumption in these enterprises began to be reflected in February-March when there was an increase in prices of basket products, but also raw materials from imports. As rising food prices increased the pressure for price increases in bars and restaurants.
Consumption also declined last year due to the pandemic. Representatives of the Association of Bars and Restaurants underlined earlier that Covid 19 for bars and restaurants for 2021 created a new pattern of customer behavior, as most of them learned to consume coffee and main meal in offices and homes and therefore consumption dropped significantly./Monitor
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