Historic Berlin Beer Garden 'Luise' to Close at End of Year Amid Rising Costs

The well-known beer garden and restaurant 'Luise' in Berlin-Dahlem is set to close its doors permanently at the end of this year, marking the end of an era for one of the city's oldest and most beloved hospitality venues. Located near the Dahlem-Dorf U-Bahn station and surrounded by chestnut trees, 'Luise' has long been popular among locals, students, and visitors alike.

According to the property owner, the decision to shut down operations was driven by ongoing economic pressures that have intensified since the COVID-19 pandemic. The hospitality industry across Germany has faced significant challenges in recent years, with increased costs for goods, energy, and labor outpacing any revenue gains achieved through price adjustments.

Since 2019, the costs for supplies and utilities at 'Luise' have surged by approximately 70 percent, while wages have risen by 50 percent. These increases have eroded profitability, making continued operation unsustainable. While the business was able to raise prices, these adjustments were insufficient to offset the sharp rise in expenses.

The broader context for the closure involves policy changes affecting the hospitality sector. The anticipated reduction in value-added tax for restaurants, which was expected to provide some relief, did not arrive in time to benefit 'Luise.' Additionally, increases in the minimum wage have further impacted operational costs, especially for venues like 'Luise' that rely on seasonal staff during the busy beer garden months.

Currently, the restaurant employs around 40 people, including 27 full-time staff members. All employees have been notified of the closure, but the ongoing demand for skilled hospitality workers in Berlin and beyond is expected to ease their transition to new employment opportunities.

The closure does not stem from high rents, as the property owner also holds the freehold of the 3,000-square-meter site. Known for a longstanding connection to Berlin's commercial and agricultural sectors, the owner has diversified into regional food production, including mozzarella cheese, which featured prominently on the 'Luise' menu.

Over the decades, 'Luise' has maintained a traditional yet accessible menu, offering pizza, classic beer garden fare, and hosting family gatherings and sports events. The venue is currently preparing for its final goose roast season, with prices reflecting the challenging economic environment.

The site has a storied history, having served as a gathering point for students of the nearby Free University of Berlin since the 1960s. The beer garden became a popular respite during periods of social change, offering a relaxed setting under mature trees.

Future plans for the property include the development of new residential units, with a building for eight apartments set to replace the beer garden area. While the beer garden itself will disappear, the main villa may continue to house a small café or bistro operated by a tenant, ensuring some continuity of hospitality on the site.

The closure of 'Luise' reflects broader trends in the hospitality industry, where many traditional establishments are struggling to adapt to rising costs, shifting consumer behavior, and changes in urban development. Despite the loss, the surrounding area will continue to offer alternative dining and social venues, including other historic restaurants and beer gardens in Berlin's southwest.