The German hospitality industry is confronted with one of the greatest challenges in its recent history: business succession. In addition to the everyday burdens of rising operating costs, an acute shortage of skilled labour, and increasing bureaucratic hurdles, there is a lack of interested entrepreneurial personalities willing to continue established gastronomic businesses. This development is identified as a significant factor for the future viability of many establishments.
A current business succession report by the Association of German Chambers of Commerce and Industry (DIHK) illustrates the urgency of the situation. The hospitality sector, along with retail, is among those most affected by a lack of successors. Statistically, for every potential successor, there are three to four businesses ready for handover. This means that more than one in four entrepreneurs who are leaving the business due to age are considering closure, as no adequate succession solution can be found.
Economic Conditions and Lack of Prospects
The DIHK business succession report for 2025 establishes a direct correlation between the tense market situation and the shortage of successors: in 92 per cent of cases where closure is considered, the lack of succession is the primary reason. Additionally, other factors significantly burden businesses. Skilled labour shortages are cited as a problem by 63 per cent of companies, high energy and material costs by 49 per cent, and general future uncertainty by 47 per cent. Furthermore, in 40 per cent of cases, increasing bureaucratic burdens contribute significantly to decision-making. Many entrepreneurs express feeling overwhelmed by the current conditions and see no long-term perspective, which is particularly evident in the gastronomy sector.
- —Skilled labour shortage in gastronomy
- —High investment and financing costs
- —Extensive bureaucratic regulations
- —Declining guest numbers and low profit margins
These factors hinder the necessary modernisation and economic development of many gastronomic businesses. Data from Creditreform Wirtschaftsforschung shows that approximately 24,500 restaurants, eateries, and pubs nationwide closed between 2024 and 2025. The causes for this are complex, ranging from economic difficulties to unresolved succession situations.
Approaches to Business Succession
The Frankfurt hospitality group cuisyn observes that business succession is increasingly becoming the central issue for the industry's future. Dr. Rigbert Fischer, Managing Director of cuisyn, notes that restaurant closures are often primarily associated with economic difficulties. However, he points out that increasingly, successful businesses with established teams and loyal regular clientele are also affected, their future remaining uncertain due to a lack of successors. Cuisyn regularly conducts discussions with restaurateurs nationwide, with enquiries predominantly coming from established individual businesses and larger corporate groups with substantial annual turnovers.
Mr Fischer explains that the reasons for contact are varied, but the central question often is how to proceed when one's own role needs to be reduced. Restaurateurs wish to hand over their life's work to qualified hands, but often no successor is found within the family. Gastronomy requires a high degree of passion and personal commitment, which leads many younger people to opt for more professionally predictable prospects outside of self-employment. This significantly complicates the search for successors. Cuisyn's objective is not only to continue businesses but also to preserve their identity long-term by maintaining restaurant teams, regular guests, and established concepts while simultaneously developing them professionally.
A key component of cuisyn's model is the digitalisation of internal processes. Administrative tasks, personnel planning, inventory management, and controlling are centrally managed to relieve individual businesses organisationally, while retaining the unique character of the restaurants. Hospitality, specific concepts, and personal contact with guests remain central. Dr. Fischer emphasises that technology in an industry with a shortage of skilled labour must be deployed where it generates real added value. Digitalisation is therefore primarily used in administrative processes, planning, and control to allow teams more time for personal guest interaction. This approach by cuisyn aims to secure successful gastronomic businesses in the long term and open up a future for them, even when the traditional business succession option is not available.
