The outlook for the bar and restaurant sector in the Balearics, especially Mallorca, is looking bleak for 2026.bThe restaurant sector in Mallorca is facing significant challenges, with predictions of 500 to 600 closures this year. This is largely attributed to tourists arriving with limited budgets and shorter stays, having already spent heavily on flights and accommodation.
The small and medium business association 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.
And, over the last decade, one in ten bars and cafés in the Balearics has closed, according to data from the National Statistics Institute (INE), a trend that is hitting neighbourhood businesses particularly hard. According to César Amable has presided over the Small and Medium-sized Enterprise of Mallorca (PIMEM) since November 2022, for this 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,” he has warned. And now there are mounting concerns about the new Paseo Maritimo sea front in Palma.
Residents have attributed the area’s ongoing commercial crisis to the prevailing nightlife-centric business model rather than a lack of parking spaces, directly addressing concerns raised by local traders following a significant drop in revenue amid recent redevelopment works. The neighbourhood association maintains that the issues facing stem from an over-reliance on businesses such as minimarkets and kebab shops centred on late-night activity, instead of broader urban shortcomings.
In response to calls for new underground car parks or temporary parking options, association representatives state, “Residents don’t want improvised parking solutions or new underground infrastructures without rigorous planning. Any such project requires technical studies, institutional consensus, clear deadlines, and major investment”. Demonstrating a collaborative approach, they add support would be forthcoming “when such a project exists”.