Hungarian restaurants struggle: costs match Europe but revenues lag behind
A new study says tourist traps create competition that squeezes quality restaurants, as foreign visitor numbers fall and most Hungarians cannot afford to eat out regularly.
Hungarian restaurants are struggling as costs mirror those in Europe, but revenue lags behind. Between 2021 and 2024, the number of hospitality venues in Hungary fell by 6 percent, while 22 other member states experienced growth. Over the past decade, 18.5 percent of hospitality businesses have vanished.
One reason for this trend is the dominance of cheap, low-quality lángos and goulash bars catering to foreign tourists and workers, squeezing out quality restaurants. These establishments primarily attract tourists seeking budget-friendly experiences, which harms Hungary's reputation.
Áron Reményik, author of a study on the subject, argues that Hungary is the only country where guests can find lángos with Greek salad and beef stew. While there's nothing wrong with simple dishes being good, the issue arises when quality is compromised and a false gastronomic culture is imposed.
Despite tourism peaking in 2025, it did little to help the hospitality industry. This year, the problems worsened: a stronger forint made Budapest 12-14 percent more expensive for European tourists, and nation-branding campaigns were halted. August saw a 14 percent drop in foreign visitors compared to the previous year.
The founder of Eventrend Group, a hospitality venue operator, notes that Hungary now matches European prices across various cost categories. Labor and raw material costs are also on par with southern European countries like Italy and Spain. This has made it difficult for Hungarian restaurants to compete.
While costs and prices are now comparable to Western Europe, revenues are not. Austria, with a similar number of hospitality venues, generates twice the sector's revenue. This disparity exists not just among tourists but also among domestic guests.
With two-thirds of Hungarian society living below the EU's lower middle class, the lack of a broad, solvent middle class makes it challenging for restaurants that rely on returning customers to survive. According to measurements, the number of hospitality venues in the capital fell below 8,000 in 2024, and 7,778 were recorded at the end of 2025.
Reményik suggests extending the certification and inspection system for Hungarikums and authentic Hungarian cuisine to the street-food segment. Limiting the number of tourist-oriented street-food outlets in popular tourist zones could also help. While this won't directly boost Hungarians' income, reduced competition might lead to falling rents, potentially improving the situation for struggling quality restaurants.
Written by urgent.news from Euronews's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
