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."
Richard PearsonFunny, previously you'd never heard of Es Cruce. Or Manacor. And it's wayyyy out of your comfort zone. Erm, anybody can use Google maps.
Anyway, How much does a T-bone cost there?
Morgan WilliamsAfford what ? Xoriguer ?
Guy who runs it is a mate of mine. Guiem.
He used to be the maitre d’ of Asador Txakoli, but left when the owner’s son took over and ruined the place. Pity as it was excellent, you could normally find me there every Saturday night.
Morgan WilliamsYou mean Es Cruce, on the way to Manacor, started by a high powered executive at Banca March, who was told he was crazy when he handed in his notice to start a restaurant ?
Been loads of times.
We are launching a locals card soon to offer island wide discounts for residents to offer deals on quieter days and times based on what our marketing company succeeded with in the Uk. Watch this space.
Not living (fortunately) in the "hoy paloy" areas, it has been very noticeable that restaurants price themselves to their clientele, or go out of business as many have in my local area.
Most of you live in the west of the island, eat in over priced and under performing restaurants, the east of the island has realised, the golden goose has died, and keep their standards with realistic prices.
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.
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Just want tonsee tje day when HE cuts prices at his restaurants!
Richard PearsonFunny, previously you'd never heard of Es Cruce. Or Manacor. And it's wayyyy out of your comfort zone. Erm, anybody can use Google maps. Anyway, How much does a T-bone cost there?
JimbobInteresting. What's the name of your company?
Morgan WilliamsAfford what ? Xoriguer ? Guy who runs it is a mate of mine. Guiem. He used to be the maitre d’ of Asador Txakoli, but left when the owner’s son took over and ruined the place. Pity as it was excellent, you could normally find me there every Saturday night.
Morgan WilliamsYou mean Es Cruce, on the way to Manacor, started by a high powered executive at Banca March, who was told he was crazy when he handed in his notice to start a restaurant ? Been loads of times.
Richard PearsonIf you can't afford it, why go there? I know the answer, but do you? Try Es Cruce. Look it up.
We are launching a locals card soon to offer island wide discounts for residents to offer deals on quieter days and times based on what our marketing company succeeded with in the Uk. Watch this space.
It's not going to happen though is it.
Not living (fortunately) in the "hoy paloy" areas, it has been very noticeable that restaurants price themselves to their clientele, or go out of business as many have in my local area. Most of you live in the west of the island, eat in over priced and under performing restaurants, the east of the island has realised, the golden goose has died, and keep their standards with realistic prices.
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.