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Mallorca’s restaurant sector faces crisis, up to 600 closures predicted next year

"All-inclusive is another of the main problems for restaurants"

All-inclusive works against restaurants, commerce, and tourism in general | Photo: Josep Bagur Gomila

| | Palma |

The restaurant sector in Mallorca is facing significant challenges, with predictions of 500 to 600 closures next year. This is largely attributed to tourists arriving with limited budgets and shorter stays, having already spent heavily on flights and accommodation. PIMEM advocates for a distinct collective bargaining agreement for restaurateurs, separate from hoteliers, highlighting their differing business models. Key issues include the negative impact of hotel seasonality, the dominance of "sun and beach" tourism over gastronomic or conference tourism, and the detrimental effect of all-inclusive packages on local businesses. The sector also grapples with staff attrition to hotels during peak season and increasing absenteeism, compounded by many restaurateurs reaching retirement age.

César Amable has presided over PIMEM since November 2022.

César Amable has presided over the Small and Medium-sized Enterprise of Mallorca (PIMEM) since November 2022. Since taking office, he has overseen the launch of the Gastronomic Awards Gala in 2023. Today, he calls for a specific restaurant agreement and seeks solutions for a sector, the restaurant industry, which is in decline due to an outdated agreement linked to hoteliers. PIMEM is enthusiastically preparing for the III edition of the Mallorca Gastronomic Awards Gala 2025, "a gathering that highlights the sector on the Island."

From PIMEM, how do you welcome the celebration of these Gastronomic Awards?

César Amable: We are very excited. The III Mallorca Gastronomic Awards Gala 2025 introduces the restaurant sector to Mallorcans and highlights restaurants. Furthermore, it recognises and stimulates the economy of the awarded businesses. They also help to promote the consumption of local produce. We hope to continue celebrating these awards for many years.

What importance does the Small and Medium-sized gastronomic Enterprise have in the Balearic Islands?

César Amable: A great deal; the Island is a tourism monoculture. In Mallorca, tourism is the main economic driver. Everything else consists of auxiliary companies to the tourism sector. Within tourism, there are two main blocks: hotels and restaurants. In the Balearic Islands, restaurant businesses are the majority; but hotels are much larger and carry more weight.

What role do small and medium-sized restaurant businesses play in Mallorca's tourism sector?

César Amable: Currently, there are over 8,000 bars, cafes, and restaurants in Mallorca. The number of hotels is much smaller, about a thousand. Restaurateurs play a fundamental role on the Island. But hotels have much more staff, drive the hospitality collective bargaining agreement, and receive the majority of tourists. Hoteliers generate more revenue because they receive more tourists, but approximately 80% of these accommodations close during the winter months. In contrast, restaurants are open all year round.

Has the number of restaurant businesses grown this season on the Island?

César Amable: No, in fact, it's decreasing. For next year, it's predicted that between 500 and 600 bars and restaurants will close in Mallorca. This season, tourists arrive with little money and little time. They've already spent their budget on flights and accommodation. Before, it was normal to come for a week, even two; now, at most, they stay for four days.

What solutions do you propose?

César Amable: From PIMEM, we demand a unique collective bargaining agreement for restaurateurs, independent of hoteliers. The Hospitality Collective Bargaining Agreement cannot include restaurateurs and hoteliers; we have different problems. We are two very different types of businesses: hotels have sales forecasts, they work with reservations. A restaurant does not.

What are the main problems facing the restaurant industry on the Island?

César Amable: Firstly, the sector needs to disassociate itself from hotels with a new collective bargaining agreement. The seasonality of hotels also negatively affects restaurants. Tourism in Mallorca continues to focus on the sun and beach climate. Where is gastronomic tourism and conference tourism if hotels close in winter? 'All-inclusive' is another of the main problems for restaurants. All-inclusive works against restaurants, commerce, and tourism in general. Hoteliers lead and control Mallorca's business fabric. There is also staff leakage to hotels during the summer season. In April, employees start leaving restaurants. Furthermore, absenteeism is increasing in the sector. And many restaurateurs are retiring.

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