Prices Increase in Bars, Restaurants in Albania

Many bars in the capital city of Albania and on the coastline have increased coffee prices recently. The same trend is marked by prices in restaurants. Growth is not just in the south, but across the country.

According to Monitor, the trend is confirmed by the Consumer Price Index, published by INSTAT, according to which the annual change in the consumer price index Coffee - restaurants (catering) was 1.3% in May and June, the highest increase since January 2017, when data are reported. By the end of 2020, prices in bars and restaurants were more stable, while they were on a downward trend in the second half of 2020.

The difficult situation that this sector went through, one of the most affected by the pandemic, has influenced the rise in prices, to compensate for the decrease in turnover. Other INSTAT data on the bar and restaurant value index show that in the first quarter of 2021, consumption in bars and restaurants was about 6% lower than in the same period a year earlier (when the pandemic had just begun of Covid-19) and 10% less than in January-March 2019, when everything was normal and the bar and restaurant business marked the best historical year.

The representative of the Association of Bars and Restaurants, Henri Jahaj, says that the decline in turnover from the significant contraction of consumption, which means that the income of individuals was reduced. Another reason is the uncertainty caused by the Covid-19 crisis, where many people cut costs, focusing more on basket products and health. Another reason for the decrease in turnover is the schedule of movement restrictions. "This made the afternoon no longer work for restaurants and bars."

The Albanian economy is highly dependent on the business of bars and restaurants. According to INSTAT data, at the end of 2019, in Albania there were about 16 thousand restaurant bars (4 thousand restaurants and 12 thousand bars), which account for about 15.4% of private entities in Albania.

In total, bars and restaurants employ about 45 thousand people in 2019, according to INSTAT, almost 10% of total employees in the private non-agricultural sector. Revenues of bars and restaurants, or expenditures of Albanians, reached a record level in 2019 of ALL 51.8 billion, or about 420 million euros, or 150 euros / capita. According to INSTAT, compared to 5 or 6 years ago, spending on cafes and restaurants has doubled.