Taverns and small establishments have been gradually replaced by fast food chains or restaurants integrated into supermarkets. The same media outlet reveals that the trend has been felt throughout the country.
Daniel Serra, president of the national association Pro.Var, warned Jornal de NotÃcias (JN) that the restaurant industry is currently experiencing a “storm as lethal as the pandemic”. In order to alleviate the problems highlighted, Daniel Serra advocates reducing VAT on food to 6%. The head of Pro.Var also states that there have never been so many restaurants for sale, as can be seen in various real estate advertisements.
Despite the scenario described, the vice-president of the National Association of Hotels, Restaurants and Tourism, according to Executive Digest, refuses to describe the situation as a generalised crisis, describing it as a phase of transformation of supply. However, he acknowledges that small restaurants are more vulnerable to competition.
Reduction in purchasing power
The reduction in the purchasing power of the Portuguese is one of the reasons given for the decline in customers in traditional restaurants. Changes in consumer habits may also explain the decline in patronage of traditional restaurants. The Portuguese now eat more meals at home and avoid eating more expensive meals in restaurants.
Daniel Serra reveals that the phenomenon began in Lisbon, although it has spread to other cities and even villages. By 2026, it is expected that many typical restaurants will have to adapt their business model to avoid having to close. However, the closure of restaurants is also expected to affect tourism, as Portuguese cuisine is sought after by tourists.
Takeaway
In addition to large restaurant chains, supermarkets are now major competitors in the sector due to the takeaway services they offer. Executive Digest also reveals that, in this context, it is becoming even more difficult to recruit qualified workers, as most workers choose to stay in the hotel sector.
Based on official data, Executive Digest reveals that by October 2025, almost 1,000 catering companies had closed and more than 2,900 had opened. However, Daniel Serra believes that the statistics can be misleading, as many are created under individual names.
In addition to calls for a reduction in VAT, restaurant representatives are asking for a review of the taxes associated with the activity, including those applied to copyright for background music.