Entrepreneurs in Poland are forced to close down their businesses due to spike in consumer prices and increasing costs of utilities. "Prices are soaring and no wonder people have no money to eat in a restaurant. Unfortunately, Polish restaurant owners are additionally burdened with the costs of energy, electricity, gas and food products we use to prepare dishes for our guests," says Grzegorz, who is shutting down his place in Wrocław. The cost of running his restaurant has increased by 18,500 zlotys within a month last year.
Owner of Green Bus restaurant in Wrocław - Grzegorz - is to shut down his place on September 18, after 7 years of operating. "The decline in sales is huge. It's no surprise, most of us have loans to pay, so consumer moods have changed. Prices are soaring and no wonder people have no money to eat in a restaurant. Unfortunately, Polish restaurant owners are additionally burdened with the costs of energy, electricity, gas and food products we use to prepare dishes for our guests," he told TVN24.
Grzegorz added that the worst situation had happened last year when the cost of running the restaurant had increased by 18,500 zlotys between October and November.
"Actually it was then when our problems started. We fought every day, worked hard only to break even or with small losses. We still had savings so we would try to save our restaurant with advertising action. Unfortunately, the season was relentless," the man added.
Before the pandemic, Grzegorz used to employ 14 people and now only 5 are left. "My fantastic employees told us they would stay until the end, as we're like family and we fight," he said, adding that 16 restaurants in Wrocław closed down in August alone.
Uncertainty grows along with prices
Mateusz used to own four pizza restaurants in Wrocław - he was forced to close one of them.
"Both small and large companies go crazy. Often the big companies, which are on top, make moves which cause problems down below - I mean the increase in prices of products, as their bar charts go down and everything collapses. They increase the prices sharply," he said.
"We prepare the menu, print out flyers, we put on the webiste and into the system. It all costs, requires a certain amount of stability and preparation, and yet it can all change from day to day or week to week," Mateusz added. "It all goes up and so does our uncertainty. We're worried how long we can still go on, while energy and winter forecasts aren't too optimistic".
Bills higher by 20,000 zlotys
The problem not only pertains to restaurant owners, but also to bakeries across Poland. The price of flour has gone up by 170% since November. There are also energy prices which are constantly growing as well.
The owners of Montag bakery in Łódź are planning to raise the prices of bread and other products by 15%. But even that can't guarantee their survival on the market. One of the bakery owners - Grzegorz - gas bills have gone up by 20,000 zlotys compared to June. His last invoice was 58,000 zlotys.
"I will get my gas invoice for August only in two weeks time. I'm facing a gas bill higher by 20,000 zlotys. Not only will we be able to close down, but simply to go bust. That's the sort of difference, such a drastic price," he added.
Business owners complain they do not receive any help from the state.
"The zero-rated VAT on food is only trouble for a Polish restaurant owner, because on the purchasing side we have no VAT we used to be able to deduct, and yet as a restaurant we are bound to add this VAT to each cash register record - as a result, the solution which was meant to help me, costs me 2,500-3,000 zlotys each month, and it's been like that for a few months now," Green Bus restaurant owner added.
Źródło: TVN24 News in English, TVN24
Źródło zdjęcia głównego: TVN24