Lahepere Villa in Kloogaranna, Harju County, has been included in the world-renowned restaurant guide for three years in a row. Owner Helen Vihtol said it has been a passion project from the very beginning.

But the doors will close on August 30 for the last time, she told radio show "Vikerhommik" on Tuesday.

"The desire was to give my heart and hands to something that emotionally impacts people. The dream of having my own restaurant had been in my heart for a long time, but I was not actively working toward it. Then life handed us a wonderful location in Kloogaranna, where we had actually planned to build a small summer cottage," Vihtol recalled.

The plot came with an existing house plan from the previous owner.

"When I saw that house on paper, it felt like I'd have a karmic debt if I didn't build it. This was the house to turn into a restaurant — one that would stand out from all the others. A home restaurant where we live full-time, but we don't serve home cooking. Instead, the kitchen that has now reached world-class level," she said.

Vihtol said the hospital sector has been hit by numerous problems since 2017

"One crisis after another. Looking at the numbers, continuing today just does not make sense. What ultimately did us in was how small we are. We would need to open for one more day per week, like we used to, we would need to serve more people... then maybe, volume-wise, it would pay off. But we simply do not have the capacity," the restaurant owner admitted, adding she works a regular job as well.

"Lahepere is us — me, my family, and our head chef. If we start bringing in extra people who have no connection to this story, then it is no longer Lahepere. It is better to go out on top and be grateful for the opportunities this venture has given us," she added.

VAT prices 'out of touch'

Due to its small size, the restaurant cannot lower its prices, but neither can it raise them. They are already high for the average customer.

"A 24 percent value-added tax — we're in third place, behind Denmark and Norway. We are comparing things that are not comparable. Most of Europe is around the 13 percent mark. The end consumer simply cannot afford to pay that. We pay the full amount, then add labor taxes, inflation, one thing spirals ahead of the rest, and with the final price, you cannot remain competitive," Vihtol noted.

She said government policy makes life very difficult for small businesses.

"While the rest of Europe shows that keeping the VAT on food service low is reasonable, we are going in the exact opposite direction and think that somehow it helps. It is a bit disheartening how out of touch that attitude is. How hard would it be to agree on something that helps businesses survive — especially small ones doing something unique?" Vihtol asked.

"We have had the Queen of Sweden visit, the president of Singapore, and both said it was an experience they would remember for the rest of their lives. And we have had Jüri from the neighboring village, who was deeply grateful he got to visit us. So why are we closing — that's the question."

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