Belgian restaurants industry: positive note after turbulent years

INSIGHT OF THE WEEK - Our hospitality sector has emerged stronger from a particularly turbulent 2019-2023 cycle.

© Industry Analysis, Gondola Foodservice.

Despite the pandemic, inflation, and a series of structural upheavals, the hospitality sector is now posting stronger economic indicators than before the crisis. This performance has been hailed by observers, given how unlikely it seemed just a few years ago.

Between 2019 and 2023, the sector's revenue increased from €7.6 billion to €9.3 billion, representing average annual growth of 5%. The operating margin improved from 4.0% to 5.5%, while added value jumped from €311 million to €517 million. A combination of growth, revenue, profitability, and value creation illustrates a real upturn for the entire sector.

Of course, this dynamic is taking place in a context of marked inflation. In 2023, nearly a third of Belgian employees saw their salaries indexed by 11%, a level not seen since the 1970s (source: FPS Employment). This surge in costs was partially passed on to prices, which automatically boosted the turnover of hospitality establishments.

But the improvement cannot be explained solely by inflation. The increase in operating margins, in particular, is excellent news. In an environment often described as unfavorable, with high costs, staff shortages, and logistical pressures, Belgian restaurateurs have been able to take advantage of the crisis to streamline their operations and modernize their models.

Transformation and modernization

Beyond financial indicators, the hospitality landscape has undergone a profound transformation between 2019 and 2023. On the one hand, we are seeing increased professionalization among operators: optimization of opening days, simplification of menus, better management of resources. On the other hand, the rise of delivery platforms has profoundly redefined distribution channels.

Between 2019 and 2023, the number of orders via Deliveroo, Uber Eats, and Takeaway more than doubled in Belgium, according to Gondola Foodservice. This channel, still marginal a few years ago, now represents a significant additional source of revenue, particularly for urban establishments.

Of course, these results must be qualified: these are sector averages, and the reality remains very heterogeneous depending on the establishment. But the trend is clear: the sector has managed to recover collectively. However, margins remain below international standards. According to McKinsey, restaurants generate between 7% and 22% operating margin.

The Belgian hospitality industry has learned concrete lessons from the crisis and initiated a structural modernization process. Its revenue, profitability, and adaptability demonstrate that it is no longer in a survival phase, but has entered a new cycle of controlled growth. The question now is whether this sector, renovated but still fragile, will be able to withstand the next economic shock. And above all: how can we draw inspiration from the best examples on the market to stand out from the crowd?

This observation is part of a broader analysis to be discovered in the white paper developed by Gondola Foodservice, available at the beginning of June exclusively for our members. ✉️ To receive it, contact Amaury Marescaux .