Restaurant and bar owners unable to sell
Owners of bars and restaurants in Flanders are finding it more difficult to find buyers or tenants, according to industry association Horeca Vlaanderen. Sellers are facing long wait times and are often unable to obtain their asking price.
Oversupply means deep discounts for potential buyers
“The supply is greater than the demand,” commented spokesperson Gerrit Budts, as a result of the economic climate and uncertainty over the future of the sector. Owners specifically blame two circumstances that have affected their industry of late: the smoking ban, now more than two years old, and the introduction of the smart cash register, designed to combat undocumented workers, still rife in the industry.
“A lot of owners simply don’t want to have to go through these changes,” Budts said. “They look to sell their business, but potential investors can afford to keep them waiting.”
At the same time, he said, rental prices remain high and continue to rise, while takings are stagnant or falling. According to the brewing industry – many brewers own a portfolio of pubs that are run by managers – more and more people are opting to drink at home, while supermarkets encourage the trend by deep discounts on crates of beer.
Of the 7,051 bankruptcies declared across the country in the first seven months of the year, the food and drinks service industry accounted for 1,261, the largest single victim. “A final source of discontent is the banks, which are very reluctant these days to give or extend credit,” Budts said. “All of those factors combine to create an imbalance.”
