Bars and restaurants are the most popular businesses in Albania.

Albania ranks among the first countries in Europe for the high number of cafes and restaurants in relation to the population, but some counties have a higher density of these businesses in relation to the number of inhabitants.

INSTAT data produced for the first time for 2021 show that Vlora, Gjirokastra and Tirana have the highest number of bars and restaurants in relation to the population, in contrast Dibra and Kukësi have the lowest number of bar businesses per inhabitant .

INSTAT data processed by "Monitor" show that in Vlorë there are 106 bars and restaurants per 10 thousand inhabitants, Gjirokastra has 81.9 bars and restaurants per 10 thousand inhabitants and Tirana ranks third with 67.8 bars and restaurants per 10,000 inhabitants.

In contrast, Dibra has only 33 bars and restaurants per 10,000 inhabitants and Kukësi only 34.

Durrës, which is the city most frequented by tourists in the country, has the lowest number of bars and restaurants in relation to the population with only 50 of them per 10,000 inhabitants. This is because the population of Durrës district is concentrated on the coast, unlike Vlora which has a longer coastline and extends to several municipalities.

The sector of bars and restaurants in recent years is suffering from the decline in consumption as a result of the emigration of the young population and the increase in prices. The high inflation of the last year has somewhat reduced the attendance in bars and restaurants, the association of these businesses asserted.

On the other hand, the increase in foreign visitors year after year is a great source of demand for bars and restaurants in Albania. Basic products such as coffee, tea, drinks and meals in restaurants are among the cheapest in Europe. Still low prices together with natural beauty remain the main catalysts of foreign tourists.

Rising costs, from higher raw material prices, pressure for higher wages and on the other hand a lack of customers throughout the year are leading to higher prices year after year.

Albania suffers from a lack of economies of scale and the bar and restaurant sector reflects the lack of this organization.

In recent years, the activity of bars and restaurants has decreased due to the increase in prices and the emigration of the population. According to the data of the INSTAT business register, in 2021, 854 activities of food and beverage services were closed, with a decrease of 5.2%.

There are a total of 15.5 thousand bars in the country, from 22 thousand in 2015, being the second most preferred activity in the country, after the minority business.

The sector is also facing another crisis, that of the lack of manpower. Until 2020, according to INSTAT data, there were about 45,000 people employed in bars and restaurants, where, however, it is estimated that the sector has high informality.

Many bar and restaurant businesses find it difficult to find new employees. Even the few employees who are left in the country demand high payments.

This situation made the activity of these structures even more difficult for the past year. According to the association's data, there are 15,000 job vacancies in bars and restaurants.

The decline in consumption is also reflected in imports. According to the Ministry of Finance, for the first two months of this year, coffee imports were about 1 thousand tons, with a contraction of 28.5% on an annual basis.

(Source: Monitor)