Latvia's Restaurant Sector Faces Mass Closures: No Light at the End of the Tunnel

Restaurants in Latvia are currently in a very difficult situation, said Jānis Jenzis, head of the Latvian Restaurant Association (LRA). He noted that another Michelin-recommended restaurant, Barents, has announced its closure, which clearly shows that at the beginning of the year the catering industry and restaurants are facing serious hardship. Jenzis added that difficulties in the catering sector are not limited to fine dining – many restaurants are 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 this year, Jenzis noted. He said that there is currently political inaction, while the sector faces 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. As previously reported by LETA, the restaurant and bar Barents, included in the international gastronomic guide Michelin Guide, will be closing in Riga’s Old Town on Smilšu Street. The restaurant’s last day of operation will be the 31st of January. This will be the second Michelin Guide-listed restaurant in Latvia to close this January. As reported earlier, the seafood restaurant Tails on Antonijas Street in Riga closed on the 12th of January. Read also: The construction cartel case returns to Parliament – dispute over secret recordings