Staff turnover and falling demand put Ukraine's restaurant business under threat

Following the government's decision to allow men aged 18 to 22 to travel abroad, Ukrainian restaurateurs are reporting staff outflows. At the same time, they say the main threat to the industry is not a shortage of staff, but structural economic problems that could lead to mass restaurant closures in the coming months.

This was reported by "Economic Truth" on September 29, citing representatives of the restaurant business.

According to Stanislav Zavertayl, co-founder of Kyiv restaurants Zavertayl and Honey, five employees from the younger age group were laid off after the Cabinet of Ministers adopted the resolution. He predicts that the outflow of employees aged 18–22 could reach 20–30%. However, as market participants note, the main reason for the possible crisis is not a shortage of workers, but a drop in effective demand and a seasonal downturn. November is traditionally considered the least profitable month in the industry, and martial law and economic instability have only exacerbated seasonal fluctuations. According to restaurateurs, up to 20–30% of restaurants in the capital, which amounts to hundreds of establishments, may cease operations. The founder of the chain of establishments, Alex Cooper, believes that some formats, which are already operating with low profitability, will not withstand another “winter wave.”

According to analytical data from Poster, a company specializing in cafe and restaurant automation, from January to August 2025, the number of visitors to public catering establishments decreased by 8.5% compared to the same period in 2024. At the same time, the average check increased by 16.5%. However, total revenue in the industry increased by only 6.5%, which is commensurate with the level of inflation, which was 6%. At the same time, the cost of individual goods and services in catering establishments is growing faster than official inflation rates. In recent years, each winter has become a kind of “stress test” for the restaurant business - in addition to the seasonal drop in attendance, blackouts, shelling, and a reduction in the number of employees were added.

After the government decree of August 27, which allows men aged 18–22 to leave Ukraine, many restaurateurs have reported the dismissal of young employees. According to co-owner Valeriy Sozanovsky, 12 employees of the specified age category have been dismissed in the Lviv restaurant group FAMI. The holding company !FEST has 22 employees.

Olga Kupets, a researcher at the Kyiv School of Economics, believes that the new migration policy may have long-term consequences, including a negative impact on the demographic situation in Ukraine.

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