Half of Germans Anticipate Lower Dining Costs

A recent survey reveals that many Germans are looking forward to more affordable dining options as discussions around a proposed reduction in value-added tax (VAT) for restaurant meals gain traction. The planned cut aims to decrease the VAT on food served in restaurants from 19% to 7%, with expectations set for implementation on January 1, 2026. This initiative is part of a coalition agreement between the Union and the SPD, intended to ease the financial burden on consumers and encourage dining out.

The survey, conducted by YouGov on behalf of the Deutsche Presse-Agentur, indicates that 50% of respondents believe the tax reduction will lead to lower prices on restaurant menus. While 19% fully support this belief and 31% lean towards optimism, 44% remain skeptical about seeing any decrease in prices.

Despite mixed feelings regarding the actual impact of the VAT reduction, a significant majority, totaling 81%, view the tax cut positively, while only 10% oppose it. Furthermore, 77% of those surveyed expressed concern that restaurants might utilize the tax savings to offset rising operational costs rather than passing the savings on to consumers. Among these, 28% fully agree with this sentiment, while 49% are somewhat in agreement.

Dining costs are a prominent concern for many, with 74% of respondents stating they would dine out more frequently if menu prices were lower. Of this group, 30% fully agree and 44% partially agree. Additionally, over two-thirds of participants indicated that restaurant dining has become too expensive, including 26% who completely agree with this assessment.

Interestingly, there is a preference among the public for a different approach to tax reductions. A substantial 75% of respondents favor a VAT cut on grocery items sold in supermarkets rather than on restaurant meals. Within this group, 44% fully support this idea, while 34% are somewhat in agreement. Only 13% oppose the notion.

Previously, the SPD had proposed lowering the VAT on essential food items from the current 7% to 5%. However, this proposal did not make it into the final coalition agreement. The push for a VAT reduction in the restaurant sector was largely championed by the CDU and CSU as part of their campaign initiatives.

This survey was conducted with a sample size of 2,069 individuals aged 18 and older from April 11 to April 14, 2025, reflecting a wide array of consumer sentiments regarding dining and pricing in the hospitality sector.