Latest news and stories about restaurant sector in Portugal for expats and residents.
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The crisis in the restaurant sector cannot be resolved with financial aid: if there is excess supply, as appears to be the case, the only solution is to close down.
A look at how Portugal’s high-end restaurants are reacting to the crisis in the dining industry — from menu changes, price adjustments and reduced covers to take-away/delivery, tighter local sourcing and new business models aimed at surviving falling demand and rising costs.
The hospitality sector is entering 2025 with ‘extremely depressed’ margins and a wave of largely unseen or ‘silent’ closures, the industry association warns. Rising input costs and liabilities from the Covid bill have eroded profitability despite a package of government support, and the sector expects more than a thousand closures next year. The closures are hard to spot individually but carry a structural impact on local economies, employment and supply chains. Industry representatives say short-term relief has helped but longer-term, targeted measures are needed to stabilise margins and prevent further structural damage.
The restaurant sector “applauds” the Government's rapid response, but warns that the measures are only stopgaps. Pro.Var insists on a reduction in the tax burden and on an adjusted lay-off scheme to take the sector out of “survival mode”.
Turismo de Portugal will support businesses in the tourism sector, including restaurants, by paying off debts to banks and extending the deadlines for repaying funds to the organisation, the Minister of Economy and Territorial Cohesion announced today.
Asked about a potential crisis in the sector, Minister Castro Almeida stressed that the restaurant sector is “very important” and “employs many people”.
Pro.Var and AHRESP are calling for “urgent support measures” for the restaurant sector. The package of proposals includes VAT measures and various incentives.
A statement asserting that restaurants and the catering sector are not a luxury but provide essential economic, social and community services and should be treated as such.
The restaurant sector in Portugal is experiencing difficulties. Several factors are contributing: rising costs of raw materials, a shortage of labour, a heavy tax burden and a decline in Portuguese purchasing power.
High-end dining has sounded the alarm over a crossroads that is eroding business profits. In traditional kitchens, some neighbourhood restaurants are unaware of this crisis. What can be expected for the restaurant industry in 2026?
