The catering industry in France faces a cascade of challenges, grappling with a host of issues from surging inflation and dwindling customer numbers to loan repayments from the pandemic era

and soaring energy costs. Bankruptcies are on an alarming upward trajectory, painting a grim picture for many in the business.

Patrice Creus' journey lasted merely three years, culminating in liquidation this August. "I poured my heart and soul into this restaurant, making sacrifices for my family. Now that it's over, I'm simply relieved the suffering has ended," shared the former owner of Le Comptoir in Rennes, who faces years of debt repayment. Initially thriving with offerings like grilled ribeye, hand-cut tartare, and a €19 three-course menu, serving 180 customers daily, the business seemed solid.

"Post the long Covid-19 closure, when we reopened in June 2021, our customers had vanished. Remote work changed the game," lamented the entrepreneur. Sales plummeted by half, leading to days where staff had to be sent home, and the dining area often lay deserted. Fridays became ghostly. "Staff management became a nightmare."

To exacerbate matters, a sector-wide agreement implemented in 2022 spiked his payroll expenses—an effort to elevate a profession abandoned by younger generations. Coupled with soaring food prices due to inflation, Creus struggled to maintain margins, unable to pass on cost hikes to customers using subsidized vouchers. "The figures simply didn't add up in recent months."

Similar to Le Comptoir, numerous restaurants are facing dire straits as the year draws to a close. From January to October, insolvencies in the sector surged by 52% compared to 2022, according to Banque de France data released on November 15. This spike signals a rebound after a substantial drop in insolvencies during the pandemic, with 5,124 establishments facing commercial court procedures in the first nine months of 2023—a 9% increase compared to the same period in 2019.

Despite closures, the industry continues to grow in total numbers (with more openings than closures), boasting 136,000 restaurants across France. Photo by Super Nintendo Chalmers, Wikimedia commons.