Märt Meesak says Estonia’s restaurant sector is in crisis — ERR News
Estonian foodservice entrepreneur and chairman of the Eesti Rahvusliberaalid-Vabaerakond party Märt Meesak said in his column that Estonia’s restaurant sector is experiencing a crisis. According to him, the costs of establishments exceed their revenues, and only those owners who have not yet given up on this business will remain working in the industry.
In the column published by ERR News, Meesak linked restaurant closures to high costs and the tax burden. He claims that VAT on food products and dining out in Estonia is the second highest in Europe after Denmark and is approximately twice the EU average.
Sector profitability
According to data from the Estonian Hotel and Restaurant Association for 2026 cited by Meesak, the sector’s average profitability fell from around 4% to 1%. The author also noted that the industry’s annual turnover amounts to less than €1 billion and declined by 1.6% last year.
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He estimates that approximately 2,500 to 3,000 food and beverage establishments operate in Estonia. Based on these figures, the average annual turnover of one establishment is €300,000–€400,000, while at a profitability of 1%, profit amounts to approximately €3,000–€4,000 per year.
VAT reduction
Meesak rejected politicians’ argument that a VAT reduction would not affect consumers and would only increase restaurateurs’ profits. In his view, even if businesses retained part of the tax reduction, it could restore establishments’ ability to invest in working conditions and raise wages.
The author also described the restaurant sector as important for tourism and related fields, including laundries, courier, security and cleaning companies, farmers, and producers. All assessments and conclusions cited are the position of the column’s author.
