27% of Belgian horeca companies are operating at a loss

The Belgian hospitality industry is operating on a knife edge. According to a joint analysis by Gondola Foodservice and Graydon CreditSafe, Belgian establishments in the sector generated a combined turnover of €9.35 billion in 2023, but with added value limited to €525 million, representing an operating profit margin of 5,3 %. This score remains well below the 7% to 22% range observed by McKinsey at global level.

Even more worrying is that nearly 27% of Belgian establishments have negative cash flow. In short, more than a quarter of the sector is operating at a loss. This structural fragility makes the entire hospitality industry particularly vulnerable to shocks, whether they be health-related, economic or inflationary.

A structurally pressured model

The sector's limited profitability can be explained in large part by a structural factor: labour costs in Belgium. According to Eurostat data, personnel costs are 10% higher than in France and 5.3% higher than in the Netherlands. Gondola Foodservice estimates that the gap is actually 20% for the hospitality sector, taking into account differences in regulations, flexibility and bonuses.

This wage pressure severely limits operators' margins. Jérôme Vandermeulen, CEO of Manhattan's Burger, illustrates the situation in an interview with L'Echo: ’In Belgium, restaurant staff cost 20% more than in France. So you have to sell a lot to remain profitable, or raise your prices... at the risk of driving customers away.’

This dilemma highlights the difficulty the sector faces in absorbing shocks or investing in its development. Against a backdrop of rising costs (raw materials, energy, rents), the slightest change in demand or market conditions can be enough to tip some players into insolvency.

This exclusive study by Gondola Foodservice, the first of its kind to quantify the margins and vulnerabilities of the sector, could serve as a basis for broader reflection on the economic and regulatory framework in which Belgian hospitality businesses operate.

This finding is part of a broader analysis presented in the white paper developed by Gondola Foodservice, available exclusively to our members at the end of May. ➡️ To receive it, please contact Amaury Marescaux. The topic will also be analysed during Gondola Day on 22 May 2025.