Overview
- The reduced rate took effect on January 1 under the Steueränderungsgesetz 2025, and beverages remain taxed at 19 percent.
- Spot checks in Frankfurt, Bavaria and Hesse found most restaurants holding prices, with only isolated cuts such as cheaper lunch offers or small reductions on selected dishes.
- Industry group Dehoga says the relief will help secure jobs, restore competitiveness against takeaways and retail, and fund investments or repayments.
- The statutory minimum wage rose to €13.90 per hour this month, adding to personnel costs cited by owners.
- A survey by IHK Nord reported the hospitality business climate index improving from 83 to 99 based on responses from more than 500 firms.