Restaurants in Latvia are currently in a very difficult situation, says Janis Jenzis, head of the Latvian Restaurant Association (LRA).
He noted that another Michelin-recommended restaurant, Barents, had announced its closure, which clearly showed that at the beginning of the year the catering industry and restaurants were facing serious hardship.
Jenzis added that difficulties in the catering sector were not limited to fine dining – many restaurants were closing “quietly and without much notice.” According to him, this trend may continue, as it is currently the off-season and business owners see no hope for change, since there are no discussions at the political level about the critical situation in the sector or about support measures.
“High-quality products that are loved by guests and well visited cannot survive and cannot continue operating. This means that something in the overall system is not working properly,” Jenzis said.
As a result, the Latvian Restaurant Association, the Latvian Bar Association and the Latvian Hotel and Restaurant Association (LVRA) have agreed on next steps, including organising a protest in September.
He said that there was currently political inaction, while the sector faced several challenges: low tourist numbers, declining purchasing power among residents, a high tax burden, one of the highest value added tax (VAT) rates in the European Union, and the highest labour tax burden in the Baltic states. As a result, according to Jenzis, there is no “light at the end of the tunnel,” and the sector is not receiving support. (BNN)