Burger King among a wave of restaurant closures in Tartu
Several eateries in Tartu have closed this year, including Burger King and the long-running chocolate café Pierre. The sector is struggling with rising costs and weak demand.
More restaurants and cafés than usual are shutting down in the Estonian city of Tartu this year. According to Postimees, both new and long-established businesses have announced closures as costs climb while demand stays subdued.
Who is closing
Last week, Pierre, a café and chocolate shop that had operated on Tartu's Town Hall Square for about two decades, announced it would close. Gastronomist, Puente and Ralf Cafe have also already shut this year.
Last month, Burger King closed its outlet in the Kvartal mall. Laura Maarand, a board member at the franchisee Tallink Fast Food OÜ, cited tough competition in central Tartu and unfavorable rents. The Lõunakeskus branch, open since 2020, will keep operating. Last year the franchise company posted losses of more than €3 million on revenues of €7,083,014.
Sinimandria, which opened only last summer, announced today that it will close in November after failing to draw enough customers. Owner Ivo Mägi said the finances were decisive and the restaurant never found its place. Last year it recorded losses of €187,534 on sales revenue of €170,496. Mägi noted that the whole sector is struggling, with demand weak while costs rise. Sinimandria will meet all its obligations to partners and employees before closing.
Assessing the causes
Jaanus Sults, who sits on the boards of the more profitable venues Pahad Poisid, RP9 and Chaplin, linked recent difficulties more to cooler summers and seasonal trade than to tax increases. He conceded, however, that the VAT rise and the coming excise duty hike have hardly helped.
Tartu Deputy Mayor Priit Humal (Isamaa) said the catering sector's problems are well known, but the city government can do little to ease them, since VAT and excise changes are set by the national government.
