A record number of bankruptcies awaits in the restaurant industry – Greater Oslo

In recent years, the phrase has remained as a notch in the ledger:

– If we survive this, it will be like before, says Nicolai Aanonsen Engesvik.

The savvy bar owner takes a sip of his pint.

Storgata’s waterhole is almost empty.

– Expenses, invoices, prices. Just convincing people to come is difficult, she says.

The restaurant and nightlife industry faced a pandemic. Then came the electricity prices, rising interest and time consuming.

– The entire sector is in difficulty. I know many people who exhausted all their savings and borrowed what they could.

HEAVY: The work that Nicolai Aanonsen Engesvik previously described as a party has become a struggle.

Photo: Rolf Petter Olaisen / NRK

Empty piggy banks

Heavyweights, small businesses and independents have filed for bankruptcy.

Last year at this time the accommodation and restaurant sector went bankrupt.

The last time so many closed their doors was in 2008.

Horgan’s pub has gone bust after 32 years.

After five years it was the end of the well-known pub Skjenken Bar og Bakgård on Youngstorget in Oslo. On New Year’s Eve they opened for the last time.

Christopher Nielsen’s Misfornøyelsebar in central Oslo will close its doors for good in 2023. The venue has seen several challenging years.

And there will be others.

– We expect a strong wave of bankruptcy for the entire country in 2024, says Kari Mette Almskog, CEO of Dun & Bradstreet Norway.

Kari Mette Almskog, managing director of Donner Bradstreet Norway, predicts a difficult spring for the sector.

Photo: Nadir Mohammad Alam / NRK

The analyst believes that 2024 will offer a record number of bankruptcies.

Its data shows that many have exhausted equity and accumulated debt over the past year.

If you add to this the increase in costs, the road to failure is short.

Restaurants and nightclubs are among those in the worst position.

The expert emphasizes that it is an industry with many risks and that it sells something that consumers discount when needed.

MANY: Over the past year, regulars have had to say goodbye to several nightclubs and restaurants. Many after decades in the urban landscape.

Photo: Nadir Mohammad Alam / NRK

The hook on the door of the inn

Selling beer when people have trouble putting food on the table is no easy feat.

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You can feel it in all the bars run by Nicolai Aanonsen Engesvik.

The bar owner is always a little behind on his payments. He has to call good suppliers to ask for ten more days to pay.

– It’s not a good feeling, he says.

EXPENSIVE: Four times a year big breweries raise prices. The bar owner chooses not to update so often.

Photo: Rolf Petter Olaisen / NRK

In one of his bars, the mountain of debt grew.

Perestroika opened in 2015. People flocked. It was also here that he met his future wife through a salary account.

– He was my baby. We did everything we could to save him, she says.

But turnover never reached pre-pandemic levels. In October she had to hand over the keys.

FAILURE: Bar Perestrojka opened in 2015 and was located in Strøget in central Oslo.

Photo: Nadir Mohammad Alam / NRK

And he’s not the only one.

A survey conducted by Avisa Oslo shows that in the last two years 74 restaurant businesses in the city have closed or gone bankrupt.

Many people find this sad.

Nadir Mohammad Alam / NRK

The little ones struggle

When Gloria Bizimana (21) and Ijeoma Maduekwe (23) go out, they choose small, independent places.

– They are the ones who make Oslo Oslo. At the same time, I think they are the ones who are struggling the most now, Bizimana says.

The friend agrees.

– Money accumulates with the greats who will always survive, says Maduekwe.

Nadir Mohammad Alam / NRK

Important meeting places

– It’s sad that many places have to close, says Nikolai Borge.

After turning 18, the desire to explore life in the open air is great.

– It is important to have places to meet and be together. And where you might want to spend your time when you finish school and things like that, she says.

Nadir Mohammad Alam / NRK

I could not wait

Jeanvier (40) often goes to Youngstorget. Several places have closed there in the last year.

– After the coronavirus, I thought we were on our way to better times. I looked forward to concerts and going to clubs.

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He himself takes it as an invitation to use the places he likes.

Two out of three are worried

But not everyone in the industry struggles that much.

Member surveys conducted by Virke show that one in three in the industry think things are going well. While two out of three are worried about the increase in costs and the decrease in purchasing power.

At the same time, many people are struggling with the consequences of the coronavirus.

– Their hope is that price inflation will stabilize and interest rates will fall. Nobody wants expensive time, says Rhiannon Hovden Edwards in Virke.

Rhiannon Hovden Edwards is director of culture and experiences at Virke.

Photo: work

She believes that large operators are in a better position than small ones because they are less vulnerable to economic fluctuations. They can also profit from the little ones in difficulty.

– If you are a big player with ice in your stomach, then there are good acquisition opportunities right now. If you can afford it and can wait a while, she says.

But not everyone can afford to wait.

LATEST: Many catering establishments “drank” their entire capital during and after corona.

Photo: Rolf Petter Olaisen / NRK

– You lose the special ones

– It is sad to lose special places with a soul, says Nicolai Aanonsen Engesvik.

After the closure of Perestroika, many regular customers sent emotional messages to the owner of the bar.

– They thanked for the time dedicated, told of beautiful memories and encounters with great love.

EMPTY: The bar owner says fewer people come if the place seems empty.

Photo: Rolf Petter Olaisen / NRK

The bar owner believes that small places create the urban landscape. And I think it’s sad if they disappear into the economic drain.

Until then, there is life in the other bars in Engesvik. But the future is uncertain.

– If you like a place, you should use it while you can. If you buy one lager, you are as welcome as if you bought 15.

He thinks about it and laughs.

– You’re actually welcome.

2024-01-18 19:31:13
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