“We will continue to fight for a sustainable hospitality industry with honest entrepreneurs”

Reinvent yourself or disappear? A meeting with Paul Snoeys on the future of the hospitality sector.

© Gregory Van Gansen/Imagetting

Since the health crisis, the Flemish hospitality sector has been in (very serious) difficulty. The golden age is definitely over, and challenges are mounting. Even Horeca Vlaanderen is convinced that the number of establishments will continue to decline. But a future without hospitality? No... There will always be a need for hotels, and cafés, restaurants, and other related establishments retain their raison d'être. Entrepreneurs will have to reinvent themselves to manage their costs and meet new customer needs. According to Paul Snoeys, president of the sector's federation in Flanders, the mission looks difficult, but not impossible. Interview.

GFS: What are the main challenges facing the hospitality industry?

Paul Snoeys: "The hospitality industry is a particularly heterogeneous sector: a café has little in common with a hotel, just as a restaurant has virtually nothing in common with a nightclub, for example. It's therefore very difficult to generalize. But all these establishments face a common challenge: maintaining the company's profitability in an increasingly complex context. It all stems from the sharp rise in the cost of raw materials, personnel, and energy, combined with an avalanche of new standards and regulations. Prices have risen by an average of 3.9% in recent years, which is well above inflation of 2.8%. Over the last five years, the increase has even reached 28%! But this wasn't for profit: it was primarily to offset rising costs. And even this increase isn't enough... If we had to pass on all the costs that have been added in recent years, a large number of customers would lose their business."

GFS: Do these price increases have a negative impact on consumer behavior?

Paul Snoeys : "Certainly, although I think consumer behavior is primarily influenced by the sharp increase in the cost of living in general. Today, more and more consumers are very budget-conscious. And going out to a café or restaurant is often the first item of expenditure they save on. Not only are establishments less frequented, but consumers are also spending less. Previously, people often opted for a full menu, including an aperitif, wine pairing, and a after-dinner drink. Today, people are more likely to settle for a main course, a glass of wine, and a bottle of water. It's therefore not surprising that our margins are under pressure: costs are rising and revenues are falling. This has led to very sad situations: even establishments that have done well for years are having to throw in the towel."

GFS: You also mentioned an increase in personnel costs?

Paul Snoeys : “The indexations of recent years have obviously had an impact on margins. But the challenge lies less in the increase in payroll costs than in the difficulties in finding quality staff. This phenomenon is obviously nothing new, but the situation is not improving at all, on the contrary. Many workers who left the sector during the pandemic have not returned: they have found a better work-life balance in their new jobs. In addition, enrollment in hospitality schools has dropped significantly. This training is now considered a default choice: people no longer go to hospitality school out of a passion for the hospitality industry. As a result, many graduates don't even bother looking for a job in the sector. Or they very quickly reorient themselves elsewhere. Our studies show that half of graduates leave the sector after just two years!”

GFS: Are there no other channels for finding staff?

Paul Snoeys: "The VDAB tries to support us, but the people often leave something to be desired in terms of quality. You have to want to work in the hospitality industry, otherwise you won't last long. Two channels are interesting, however. On the one hand, there are students who can often easily combine a job in our sector with their studies. Moreover, they are often willing to work hard to earn a little money and finance their outings. On the other hand, there are flexi-jobs. These are people who deliberately choose the hospitality industry. Because they can combine their flexi-job with their other job, because they really need the money, and because the work is fun and satisfying. But this contribution has been decreasing since the formula was extended to other sectors."

GFS: Is it possible to reduce staff?

Paul Snoeys: “It’s already happening, out of sheer necessity. Some hospitality establishments are reducing their opening hours and even opting for one or two days of closure. This is an effective way to cut costs and offer staff a better work-life balance. Organizing operations more efficiently can also help reduce labor requirements. But we must ensure that there are always enough staff to guarantee quality service. Because this is an important factor in safeguarding the establishment’s future. I absolutely do not believe in a future dominated by robotics. An establishment where service is provided by a robot or where everything is done by computer could well operate for a while, because it remains an “experience” that we want to have. But if the entire sector operates this way, the uniqueness disappears.” Social contact with servers, the feeling of being “taken care of”, the explanations that accompany meals, the conversation with people behind the counter when you go for a drink...: these are all crucial needs that push consumers to go to a café or restaurant.

GFS: What regulations affect margins?

Paul Snoeys: “Over the past ten years, we’ve been inundated with new rules that require additional investment and/or drive away some customers. The most frustrating thing is that they’re not always well thought out. Take the proposal to ban patio heating in Brussels for ecological reasons. The policy thus deprives the hospitality industry of some of its uniqueness in the capital, because how many people don’t stay on patios in winter to consume something? The ban on smoking on patios is even worse. Well, it’s a European directive that we’ll have to comply with sooner or later. But we’re asking for a bit of time before its implementation so we can address its shortcomings and other unworkable elements. For example, we believe that sanctions should never fall on the operators of the establishments. There are many popular cafés where smokers make up half of the clientele.” This rule is also absurd because while smoking is prohibited on terraces located in public spaces, smoking on a bench located next to them is permitted. Besides, customers simply go and smoke 10 meters away, which can create a nuisance for the neighbors. Wouldn't it be simpler to leave it to the hospitality industry to decide whether or not to welcome smokers on their terraces? Introducing zero tolerance for alcohol consumption is another example. We fully recognize that drinking and driving don't mix. But let people have a glass of wine when they're having a long meal. Because that's precisely what will make many opt for a caterer or delivery. It's really frustrating to constantly come up against such walls.

GFS: Are there any other frustrations on the legislative front?

Paul Snoeys : "Perhaps too much for the good health of the sector. Many new rules require investment. Then the politicians change their minds after a few years and this expenditure has been for nothing. Consider setting up a smoking area. Another major frustration is that not all rules apply to everyone, which creates unfair competition.

The best example of this is the white box, which is only mandatory for companies with a turnover of more than €25,000 (excluding VAT) on food consumed on site: pop-up bars and other local events are therefore not affected, which is unfair. And these initiatives sometimes benefit from additional advantages. For example, I know of a town where genever bars set up in the market in winter, while the surrounding hospitality establishments are not allowed to serve it. Isn't that completely absurd?

Finally, there is the VAT regime, which is as confusing as it is unfair: 6% for takeaway food, 12% for food consumed on the premises, and 21% for all drinks. This can lead to unfair practices, such as the “accidental” application of an incorrect VAT rate. We are therefore calling for greater uniformity: 6% for all takeaway food and 12% for all food consumed on the premises, with the exception of alcoholic drinks, which would remain at 21%. This will bring clarity for everyone and give our sector some much-needed breathing space.

GFS: Are there any solutions to the challenges you have listed?

Paul Snoeys : "Today, the key to success lies in cost control. That's why it can be worth reducing the menu to continue offering quality at a fair price. We're also seeing a trend toward fast-casual concepts, with simple preparations and low-cost ingredients, such as sushi, hamburgers, international cuisines from cheaper countries, etc. Chains that are centralized around one or a few central kitchens also seem to be doing well. Dark kitchens and takeaway also offer savings. These options are particularly popular with young people, and their importance in the hospitality industry will only increase. Furthermore, I've already mentioned the reduction in opening hours. We're also seeing a rise in the number of smaller spaces. Small establishments where the owners do everything themselves or with a very limited staff are often able to better control their costs."

GFS: Is Horeca Vlaanderen also working on solutions?

Paul Snoeys : “That’s kind of what we’re all about: we represent the entire sector, not just our members. Our job is to provide solutions, and we do that, in part, by providing training through our Horeca Academy. We’re also active as lobbyists and through the advice we provide to various governments.”

Before the elections, for example, we submitted six action points to the party leaders at our "Kaarten op tafel" event, and four of these points were implemented. First, the quota of authorized hours for student workers was increased to 650 hours per year. In addition, we obtained an increase in the ceiling for tax-exempt additional income to €18,000 per year within the framework of flexi-jobs. Gross/net overtime hours were also increased to 450, provided, however, that the institution uses a white box.

But our main source of pride is the agreement that makes the white box mandatory for all hospitality establishments as of January 1, 2026, and extends it to other sectors. This is an important step towards the harmonization of competitive conditions that we, Horeca Vlaanderen, have been calling for for a long time. In addition, we recently co-signed a new code of conduct for mandatory contracts with brewers and the associated lease/purchase agreements.

GFS: Are there any regional differences in consumer behavior?

Paul Snoeys : "It's certain that in cities, meals 'on the go' are often eaten throughout the year – and for a good part of the day. City dwellers are also more likely to visit a café or have a drink on a terrace. In the countryside, restaurants are much more often considered an outing in their own right: people go there mainly on Friday and Saturday evenings, but with a focus on a real gastronomic experience. The seasons and the weather also play a much more important role than in cities: there are big differences in behavior between winter and summer."

GFS: Do you also observe a change in the behavior of young people?

Paul Snoeys : “Very clearly. Young people are going out differently than they were 30 years ago. For example, they prefer one or two cocktails to a dozen pints. They are careful to eat healthy, but they also want speed, variety, experience... all at a very competitive price. Moreover, young people are more critical and turn more often to social media to guide their choices...”

GFS: What impact do online comments and social media have on the industry?

Paul Snoeys: “Reviews on sites like Google and TripAdvisor are crucial. The industry is subject to constant public evaluation, which carries a lot of weight. The problem is that satisfied customers rarely speak out on these channels, while the slightest mistake is punished. It is therefore important that establishments continue to invest in motivated and quality staff. But I don't want to paint a completely negative picture: social media also offers opportunities. Those who do it well can promote their establishment fantastically on a very small budget.”

GFS: What will the hospitality industry of the future look like?

Paul Snoeys: “Many people think that fast-casual and takeaway are the future, but I’m not entirely convinced. There will always be a place for traditional brasseries and cafes. But operators will have to reinvent themselves. Firstly, to control their costs, but also to add an “experience” aspect to their establishment. Because it will become increasingly important to offer an experience to attract customers.”

Furthermore, the atmosphere, service, quality, and price will be essential to consolidate the establishment. But the number of hospitality establishments is bound to decrease. We just hope that the “cowboys” who flout the rules and/or engage in money laundering operations will disappear first. Because Horeca Vlaanderen wants to continue fighting for a healthy and sustainable hospitality sector with honest entrepreneurs...

The hospitality industry in figures

Number of hospitality establishments:

± 35,000 in Flanders ± 65,000 throughout Belgium

Sub-sectors (based on the list of members of Horeca Vlaanderen):

• Restoration: 68%

• Drinking establishments: 17%

• Hotels: 13%

• Others: 2%

The Flemish hospitality industry is overwhelmingly dominated by SMEs: 90% of establishments employ no more than five people.

Flexi-jobs are particularly popular: Flanders accounts for 90% of flexi-jobs, with the rest being split between Brussels and Wallonia.