Spain is more of a country of bars than ever. Despite the continuous reduction in the number of restaurant companies, the hospitality industry is experiencing a sweet moment, driven by the tourism record that has emerged after the pandemic. There are fewer bars and restaurants than before, but they have more turnover and generate more employment, concludes a recent study by Caixabank Research using internal card payment data.
“The restaurant sector stands out as one of the most dynamic” in the Spanish economy, says the report prepared by economist Pedro Álvarez Ondina. Its turnover was close to 100,000 million euros in 2023, a record figure that is 9.2% above the previous year and still 6% higher than in 2019. In addition, the restaurant industry also set highs in the number of affiliates, after employing 1.4 million people last year, 4.5% more than a year before. All this, despite continuous complaints from the sector about the lack of professionals, such as waiters or cooks.
The historical business figures are even more remarkable if we take into account that the number of active restaurant companies has decreased. “The pandemic has forced a certain consolidation process in recent years,” emphasizes Álvarez Ondina. In the country there are now 8% fewer hospitality companies compared to 2019, about 20,200 fewer companies. But not all formats have disappeared with the same intensity. The decline is concentrated in cafes and bars, with 11% fewer companies (18,600), establishments that generally employ fewer workers.
“The combination of increase in membership and decrease in the number of companies (-8%) and establishments (-6%) suggests that companies that have survived the pandemic are now larger, with more staff on average” , highlights Álvarez Ondina. The sector is thus experiencing a consolidation process that is giving rise to larger groups. There are a large number of recent examples. The Barcelona group Somos Esencia closed a record year last year with 17 million in turnover and in 2024 they hope to multiply that figure thanks to the incorporation of new restaurants to their portfolio and also to the greater activity that they hope the celebration of the America's Cup. “At the end of 2023 we added a new establishment to the group, the historic Bar Bauma, which we added to the Tierra Brava, Brisa Palau de Mar, Agua and Barraca restaurants; and for this year we have planned three new openings in 'prime' locations in the city, reaching seven establishments in Barcelona," explains Àlex Mitats, executive director of Somos Esencia.
The manager believes that acquiring restaurants will always help "establish yourself in the market and be in the 'top of mind' of your customers." Now, the growth of a group will not depend solely on the number of establishments, "but they must have something that differentiates them from the rest of the offering," he considers. The Catalan group Costa Este is also among the restaurant companies that grows in the heat of tourist activity. With four restaurants in Barcelona (Cachitos, on Diagonal and Rambla de Catalunya, Nu Bcn and Boulevard), this year they will incorporate Bastian Beach, a restaurant and leisure space that will be the first beach club in Barcelona, comments Eva Torres, assistant director. from East Coast.
These two cases coincide in the search for premium locations with a large influx of visitors. And the rise of tourism has established itself as the great driving force of restaurants for 28% of restaurant establishments in the country, according to the Caixabank Research study. 10% of them also depends on the spending of international tourists. The dependence on foreign visitors is especially high in the provinces of the Balearic Islands, Málaga, Las Palmas and Santa Cruz de Tenerife. (At least 35% of their spending comes from foreign cards, in the case of the Balearic Islands, more than 55%).
The boom stage will continue in 2024, the report predicts based on the rate of consumption and arrival of tourists that are being registered. The pending issue: overcoming high seasonality. Almost a third of the sector's turnover occurs between July and September.
