According to the association, the 15% service charge has never been considered profit for businesses.
These funds were used to create a payroll fund and maintain high service standards.
“Integrating this amount into the cost of dishes is the only legal way to preserve employees' income and avoid mass staff turnover. Changing the format of reflecting the service on the bill (from a separate line to inclusion in the price) makes the market more transparent, while not altering the economic content of costs,” the statement said.
The previously applied service percentages represented an established practice that provided additional support for both employees and the establishments themselves.
The collected funds were partially directed to cover operational expenses related to servicing a la carte dining rooms, including consumables and basic service provisions for guests (napkins, toothpicks, table settings, sugar).
The "Horeca" Association conducted a pricing analysis that takes into account seasonal fluctuations and "quiet" periods when the number of customers decreases, yet establishments still incur fixed operating costs.
Considering the increase in prices for food and consumer goods, public catering establishments form their expenses based on the following pricing structure:
- products/raw materials — 38-40 percent;
- rent — 7-8 percent;
- wages (income tax, social contributions) — 15 percent;
- utilities and security — 2-2.5 percent;
- operational expenses — 2-2.5 percent;
- packaging — 1.5 percent;
- marketing — 5-6 percent;
- expenses on fast-moving items — 3 percent;
- transportation costs — 1 percent;
- banking services/acquiring — 1-1.5 percent;
- delivery services — 1-1.5 percent;
- depreciation — 1-1.5 percent;
- taxes — 4.6 percent.
Thus, the total cost in the pricing structure ranges from 82.6 to 88.6 percent, depending on the season, the level of establishment occupancy, and other factors.
“Considering the justification of prices based solely on the cost of individual dishes is methodologically incorrect. This approach ignores a significant portion of mandatory expenses without which the functioning of public catering establishments is impossible. The calculations provided represent average data for establishments in the mid-segment that are part of the "Horeca Club" association. The association does not form or regulate prices across the entire sector and is not responsible for pricing in establishments that are not its members. It has been previously noted that short-term and ill-considered decisions can lead to price increases in the public catering sector; however, these warnings have gone unheeded,” emphasized representatives of the association.
The association also emphasizes the inadmissibility of a simplified approach to discussing prices in the hospitality industry.
According to the association, price increases in public catering establishments are a direct consequence of rising raw material and supplier service costs, especially for food products (meat, dairy products, eggs, and other essential goods).
The association calls for the establishment of a professional and constructive dialogue between government bodies, businesses, and the expert community, based on facts, economic calculations, and an understanding of the real working conditions in the sector.
