Restaurant closures in Majorca are poised to triple this year as the industry laments “abusive” changes imposed by the Spanish government.
Juanmi Ferrer, president of the CAEB Restaurants Association, warned that around 600 restaurants will go out of business in 2024, up from 186 in 2023.
He added, as reported by the Majorca Daily Bulletin: “2024 has been very tough for the sector. We calculate that they will treble and we don’t rule out this forecast being exceeded.”
Restaurant owners have pointed out lower spending from those in Majorca in recent months, but Mr Ferrer also blamed taxes and bureaucratic demands from the government.
Profits have dropped from an average of 20 percent down to between 6 and 8 percent, he said.
He warned the restaurant industry in Majorca is being “suffocated” due to the pressures from the government.
Mr Ferrer continued: “Raw materials are 12 percent more expensive than in Spain as a whole. We pay up to four times more for rent, we have the most expensive collective bargaining agreement, we have difficulties in finding staff as fewer and fewer people want to come to Mallorca because of the high price of accommodation.
“We can’t serve a beer and a tapa for €1.50 as they do in some places on the mainland; here it is totally unviable. The price of food is increasingly higher. Rents have also risen a lot, so have the cost of electricity and the rubbish tax.”
On taxes and bureaucratic pressures, he added: “It is abusive in Spain in general, but even more so in the Balearics.
“The authorities ask us for more and more plans and protocols, all with their consequent expenses that we, the business owners, have to assume.” As examples, he cites the carbon footprint, the prevention of occupational risks, equality plans, and medical certificates for employees.”
Mr Ferrer also expressed his frustration with inspections that are enforcing increasingly strict regulations.
He said: “They look at us with a magnifying glass. There are businesses around us that do not comply with the regulations. They know this but do nothing. They go to those they know will pay the fines; the aim is solely to collect fines revenue.”