Burger King one of a wave of restaurant closures in Tartu

Restaurants as old and new and as diverse as Burger King and a long-open chocolaterie have been closing in Tartu amid soaring overheads and stifled demand, Postimees reported.
Pierre, a café-chocolaterie which had operated on Tartu's Town Hall Square for around two decades, announced its closure last week, joining Gastronomist, Puente, Ralf Cafe and Burger King among this year's departures in the city.
Burger King closed at the Kvartal mall last month, with Laura Maarand, board member at franchisee Tallink Fast Food OÜ, citing fierce competition in central Tartu and unfavorable rents; Burger King's Lõunakeskus outlet, open since 2020, is staying — even as the franchise last year posted losses of over €3 million on revenues of €7,083,014.

A newer restaurant, Sinimandria, which only opened last summer, announced today it will close in November after failing to attract enough customers; owner Ivo Mägi said the financials were decisive and that the restaurant never managed to find its place — last year it posted losses of €187,534 on sales revenues of €170,496.
Mägi noted the sector as a whole is struggling, adding demand remains weak at a time of rising costs and that Sinimandria will fulfill all obligations to partners and employees before closing; Jaanus Sults, who sits on the boards of the more profitable Pahad Poisid, RP9 and Chaplin venues, attributed recent difficulties more to cooler summers and seasonal trade than to the tax rises, though he noted VAT increases and the upcoming excise duty hike have hardly helped.
Tartu Deputy Mayor Priit Humal (Isamaa) said the catering sector's difficulties are well known but not something the city government can do much to alleviate, as the VAT and excise hikes are set by the national government.
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Editor: Andrew Whyte
Source: Tartu Postimees












