No one in their right mind would invest in German gastronomy?
- Stephan Busch
- 5 days ago
- 2 min read
I wrote about tax and levy obligations in Germany some time ago.(hotelservicemore.com/post/restaurants-and-pubs-taxed-to-death ). I recently came across an article on tageskarte.io that presents a different perspective. It's the view of the financial professionals at the Mook Group Frankfurt, who examined investments in German restaurants using a financial model typically employed for stock and company investments. The result is sobering.
Since negotiations regarding tax and levy increases are ongoing, things can't really get any better. Anyone who still has a brilliant idea shouldn't be deterred, but should do the math carefully.
Gastronomy in Germany: How to Turn a Large Fortune into a Small One
tageskarte.io September 26, 2025 9:22 AM | Gastronomy
Anyone wanting to invest in the restaurant industry should be prepared for the statement that they're taking on a large fortune only to end up with a small one. With this ironic and exaggerated stance, the Mook Group from Frankfurt am Main put the profitability of investments in traditional, artisanal restaurants to the test in its own analysis. The company used the Sharpe ratio, a key financial metric typically used to evaluate stocks and funds.
The starting point is anything but rosy. According to industry reports, such as those from DEHOGA, around 80 percent of all restaurants in Germany fail within the first five years. At the same time, the return on investment is a meager one to three percent.
The Mook Group's statement is clear: "Nevertheless, our calculations show with astonishing precision that no one in their right mind should invest their money in a reputable, traditionally run restaurant in a maximally hostile environment like Germany."
We all hope that times will change and that the restaurant industry can survive again – providing a livelihood for people through their work and thus paying taxes and contributions that benefit everyone. It seems there's still a long way to go.
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