The new president of the CAEB Restaurants Association in Mallorca, Juanmi Ferrer says that the time has come to reduce restaurant prices.
He acknowledges that in recent years the prices have increased across the board. One reason was that people had saved during the pandemic. Once the restrictions were lifted, they went out and spent. Prices reflected this. The association's former president and now vice-president, Alfonso Robledo, observes: "The bottles of wine and cava were joyously opened."
Ferrer points out that businesses in Mallorca have higher costs than on the mainland. Rents are generally higher. Products cost more. Salaries are higher. "We have the best hospitality agreement in Spain." The salaries are set to go up. Ahead of the next round of collective bargaining negotiations, the unions have been talking about a pay rise of above five per cent in 2025.
2024 has been characterised by lower spending, while hotels and flights have gone up in price. "If a family has 2,000 euros for their holidays, a few years ago they spent 1,000 on the hotel and transport and had another 1,000 to spend on restaurants, excursions, shopping. Now they have to pay 1,600 for the accommodation and transport and have 400 euros left for everything else."
Ferrer recently said that turnover had fallen 30% this summer. He and Robledo both now point to a 20% drop. The association president says that restaurants are the first to notice when an economic slowdown is approaching. Consumers start tightening their belts. "The European economy is cooling down."
The restaurants are still turning in profits, but these are now between eight and twelve per cent as opposed to 20% they have enjoyed over the past couple of years. Robledo concludes: "We have to continue betting on quality, but by offering more competitive prices. That means replacing some products with others."
ChappyChappy, Port Andraitx was ruined years ago with the influx of our friends from Central Europe buying over priced villas and apartments. Used to be, as you most probably know, cheap and cheerful with quality food at popular prices. Sadly no longer. I suppose it’s called progress.
We eat out a lot, however we’ve noticed an increase in prices and a reduction in quality. Also there is often a wide difference in prices, for instance a bottle of red wine in a restaurant in port Andratx priced at €35 was priced at €25 in our favourite tapas restaurant in Palma. This leaves a bitter taste, and is simply unacceptable
Morgan WilliamsMaybe the article published below this one could help to explain why.
The prices you mention are not hard to find in Palma. No need to fly to Germany or Switzerland. Xoriguer, for example, which is outside the business and commercial area of town, charge € 49 for a T bone, plus the the trimmings. And they are not the most “expensive” one in town.
I’m sure many of your readers, me being one of them, would be delighted to know where they can sit and eat a HUGE T-bone steak with all the trimmings for only €15.
Please share the info, even if it is only one.
By the way, there is a big difference between beachfront and seafront. In Port Pollensa, (and Can Picafort) which could be classified as a beach resort, most of the restaurants on the beach/sea front serve a pretty high standard of food, and never in a million years would they confuse a tourist with a local.
Hotels need looked at too. Taking advantage of work getting more quiet in the south, we headed to a one night hotel break on the east of the island. Check in at 3pm, check out at 12pm, lunch at the resteraunt, food wasn't worth touching, had a 1 hour pool swim, 1 hour at the beach ,went dark . 200 euros for the night and that was cheap. Hopefully some better residents' deals come up in the next 6 weeks.
Charles, I would tend to agree, but fail to understand how the average restaurant can over price (presume you mean overcharge) a customer when their charges, except for fresh fish and foods priced per weight, are clearly stated outside the premises and inside on their menus, not to mention online.
If, on the other hand, you mean that they are not giving value for money, then yes, time to look for somewhere else.
Charles Dalrymple-ChumleyI agree with you on that. But it's pretty dependent upon WHERE it is.
A beachfront restaurant not only has astronomically higher operating costs, but they can get away with mediocrity at high prices, and presume they're all tourists.
Away from the beach resorts, you'll find plenty of "over deliver at under price". I know of several places in the interior where you can get a huge T bone for 15€, cooked to order on a wood fired grill, including salad, potatoes, or other side dishes. And good service. Michelin star? no, but certainly enjoyable.
Also, it's worth considering that in most major metro areas in Europe, dining is far from cheap. A steak in Munich will run you at least 25€ and easily go up to 50€+. In Zurich, it will start at 60€ and approach 100€ at the top end. So for those tourists, even mediocre beachfront places seem cheap.
So, if you're not a tourist, don't go to beachfront restaurants in the middle of a resort, unless you simply fancy being in a beachfront restaurant in a tourist resort.
The smart restauranteur over delivers and under prices. That way he builds a repeating loyal client following and can relax through good and bad economic times.
The foolish restauranteur under delivers and over prices believing that he's serving diners who will never repeat because they are day trippers or tourists. With myself and my network of friends who may look like foreigners but are in fact locals we've experienced many restaurants who read us wrong, under delivered and over priced and consequently we won't return (as we could).
It's not rocket science.
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ChappyChappy, Port Andraitx was ruined years ago with the influx of our friends from Central Europe buying over priced villas and apartments. Used to be, as you most probably know, cheap and cheerful with quality food at popular prices. Sadly no longer. I suppose it’s called progress.
We eat out a lot, however we’ve noticed an increase in prices and a reduction in quality. Also there is often a wide difference in prices, for instance a bottle of red wine in a restaurant in port Andratx priced at €35 was priced at €25 in our favourite tapas restaurant in Palma. This leaves a bitter taste, and is simply unacceptable
Morgan WilliamsMaybe the article published below this one could help to explain why. The prices you mention are not hard to find in Palma. No need to fly to Germany or Switzerland. Xoriguer, for example, which is outside the business and commercial area of town, charge € 49 for a T bone, plus the the trimmings. And they are not the most “expensive” one in town. I’m sure many of your readers, me being one of them, would be delighted to know where they can sit and eat a HUGE T-bone steak with all the trimmings for only €15. Please share the info, even if it is only one. By the way, there is a big difference between beachfront and seafront. In Port Pollensa, (and Can Picafort) which could be classified as a beach resort, most of the restaurants on the beach/sea front serve a pretty high standard of food, and never in a million years would they confuse a tourist with a local.
Hotels need looked at too. Taking advantage of work getting more quiet in the south, we headed to a one night hotel break on the east of the island. Check in at 3pm, check out at 12pm, lunch at the resteraunt, food wasn't worth touching, had a 1 hour pool swim, 1 hour at the beach ,went dark . 200 euros for the night and that was cheap. Hopefully some better residents' deals come up in the next 6 weeks.
Charles, I would tend to agree, but fail to understand how the average restaurant can over price (presume you mean overcharge) a customer when their charges, except for fresh fish and foods priced per weight, are clearly stated outside the premises and inside on their menus, not to mention online. If, on the other hand, you mean that they are not giving value for money, then yes, time to look for somewhere else.
Charles Dalrymple-ChumleyI agree with you on that. But it's pretty dependent upon WHERE it is. A beachfront restaurant not only has astronomically higher operating costs, but they can get away with mediocrity at high prices, and presume they're all tourists. Away from the beach resorts, you'll find plenty of "over deliver at under price". I know of several places in the interior where you can get a huge T bone for 15€, cooked to order on a wood fired grill, including salad, potatoes, or other side dishes. And good service. Michelin star? no, but certainly enjoyable. Also, it's worth considering that in most major metro areas in Europe, dining is far from cheap. A steak in Munich will run you at least 25€ and easily go up to 50€+. In Zurich, it will start at 60€ and approach 100€ at the top end. So for those tourists, even mediocre beachfront places seem cheap. So, if you're not a tourist, don't go to beachfront restaurants in the middle of a resort, unless you simply fancy being in a beachfront restaurant in a tourist resort.
The smart restauranteur over delivers and under prices. That way he builds a repeating loyal client following and can relax through good and bad economic times. The foolish restauranteur under delivers and over prices believing that he's serving diners who will never repeat because they are day trippers or tourists. With myself and my network of friends who may look like foreigners but are in fact locals we've experienced many restaurants who read us wrong, under delivered and over priced and consequently we won't return (as we could). It's not rocket science.