Consumption of food and drink in Albania’s hospitality establishments is down between 20 and 40% amid rising inflation and significant economic problems, according to industry stakeholders.
Representatives from associations of manufacturing and service businesses report that this year, less coffee, food, and beer is being consumed throughout the country.
“In coastal areas, consumption is over 40% less, while in Tirana, it is 20 to 30% lower than in 2021. The family budget has shrunk, therefore, less is spent in bars and restaurants. Meanwhile, in bars and restaurants, prices have increased from 10 to 50% due to the increase in the price of the main basket products, such as flour, oil, eggs, dairy and meat,” said Enri Jahaj from the Association of Bars and Restaurants.
“The main reason for the increase in prices in bars and restaurants is the lack of labour and the high price of electricity. In order to find workers, the enterprises have increased the costs, as they have increased the salaries to high levels, but they also guarantee the employees housing and sleeping, which are also costs”, he adds.
He cautioned that prices could rise again in September leading to the bankruptcy and closure of many businesses. Meanwhile, there are reports that the tourist season is not yielding as much revenue, or high numbers as expected.
According to INSTAT, coffee and beer have declined in consumption, with beer declining 15% in coastal areas. In Vlora, the number is even higher- a 40% reduction, due to emigration and a lack of tourists.
