Dutch Restaurant Industry in the Throes of Crisis

ABN AMRO, The Netherlands’s third largest bank, said that the Dutch restaurant industry, which has recovered in the last couple of years, was heading towards a crisis as the sector was on track for a record 450 bankruptcies in 2025.

As many as 199 restaurants went bankrupt in 2023, and this number had risen to 260 by November 2024, according to an analysis by ABN AMRO and Hotelschool, The Hague, which looks into the reasons and solutions for the financial challenges facing the sector.

Although the industry seemed to recover well after the COVID pandemic, the bank found that problems were piling up again. Rising costs have been a major concern within the sector. Inflation and higher energy, rent and wage costs were also squeezing profit margins hard.

Since 2022, producer prices for food and beverages have risen by 17% and 20% respectively, while wages under collective labour agreements were up by 22%. These cost increases are not always offset by higher turnover adding to the pressure on entrepreneurs.

Small Businesses Hard Hit

According to ABN AMRO, Smaller hospitality businesses in particular were feeling the financial pressure. As many as 17.8% of businesses with 5 to 50 employees were facing debt problem. In contrast, 93.2% of medium-sized companies (50 to 250 employees) reported having their debts under control, compared with 92.2% of large companies (more than 250 employees).

In 2024, the number of smaller businesses with high and problem debt increased by 11.5%. For medium-sized and large businesses, the increase was 2.6% and 1% respectively.

There were also significant variations within the hospitality sector as pancake restaurants were holding their own thanks to favourable locations and high productivity. The number of delivery restaurants grew by 51% between 2022 and 2023, but due to limited demand growth, it’s becoming increasingly difficult for new players to survive.

“Business owners in financial distress face not only practical challenges but also cultural stigma. In the Netherlands, bankruptcy is often perceived as a failure, whereas in the US, it is regarded as a learning opportunity. That said, there are solutions available here too. If they seek help in good time, entrepreneurs can restructure their business or wind down in a controlled way,” ABN AMRO said.

Opportunities Aplenty

Despite the difficulties, there are opportunities for the sector too. Resilience, innovation and encouraging repeat visits are crucial to overcome this cost crisis. Digitalisation and new concepts offer possibilities for entrepreneurs.

Stef Driessen, Leisure Sector Banker at ABN AMRO, said that there were software tools for inventory management to reduce food waste and AI-driven technologies that make staff planning more efficient and could potentially cut wage costs.

Additionally, entrepreneurs can respond to demand from younger generations like Millennials and Generation Z, Driessen said.

“These groups, who consume outside the home more than average, want affordable and convenient dining options. Innovative hospitality concepts, such as discount dining, provide opportunities to appeal to this group without compromising on quality. Business owners who take the right steps will be able not only to survive but also to help build a future-proof sector that meets the wishes of a new generation of consumers,” Driessen added.