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Wine has long been the most important source of income - but more and more guests are drinking less, while the workload in the kitchen is increasing. (symbolic image)
Image: Keystone/dpa/Bernd Weissbrod
For a long time, gastronomy was financed by wine, beer and drinks. But today, guests are ordering far fewer of these. A couple from Bad Ragaz are trying to change the system. Could their idea set a precedent?
Two guests are sitting at a table. They order a tea and a coffee. They talk, scroll, time passes. Two hours later, they pay - five francs fifty per person.
It doesn't pay off for the business. Coffee and tea are sold with comparatively high mark-ups. But those who stay late and order little bring in too little revenue overall. The seats are full, the kitchen is running and the staff are on duty.
You don't even make much money with guests who first order soup, then cordon bleu and later chocolate cake - as long as they only drink water with it. For years, a simple logic has applied in the catering industry: the margins on food are comparatively small, while those on drinks are significantly higher. Alcoholic beverages in particular often bring in the decisive profit.
For a long time, this imbalance balanced itself out: A "good" table with generous alcohol orders compensated for a "bad" one - and thus covered a large part of the running costs.
It is precisely this fragile balance that is becoming increasingly unstable. Alcohol consumption is falling - especially among younger guests. Since 1992, the proportion of people who drink alcohol every day has fallen by almost two thirds. At the same time, the costs for energy, staff and food are rising. This is doubly problematic for restaurants: on the one hand, an important source of income is disappearing. On the other hand, ongoing operations are becoming more expensive.
There is also a third factor: the demands of guests. Vegan options, consideration for allergies, individual wishes - anyone running a restaurant today has to cater to significantly more needs than just a few years ago. The workload in the kitchen increases accordingly, and so do the costs. However, this can only be reflected in the price to a limited extent.
The fact that many restaurants are under a lot of pressure as a result also has to do with their already tight budgets. In the end, there is often little left over. According to the federal government's SME portal, the industry has been facing major challenges since 2021 due to increased raw material and energy costs and a shortage of skilled workers.
Many restaurants are therefore faced with the same question: how can a business still be run successfully under these conditions?
In Bad Ragaz, one restaurant is trying to find its own answer to this question. From Heaven" is located right next to the train station, in the former Hotel Bristol - a historic building with high ceilings and large windows.
The restaurant sees itself as a meeting place. On its website, it describes itself as a "restaurant, tapas bar, brunch place and cultural venue" and advertises with formats designed to "surprise" - from live events and podcast evenings to exhibitions by local artists.
The restaurant has been run by Sylvio and Leandra Rodrigues for six years. Sylvio Rodrigues originally comes from the banking industry and says that he and his wife wanted to create a place in Bad Ragaz that appeals to different age groups and target groups.
Not Michelin-starred cuisine, not a village pub, but something in between: a place where you can grab a bite to eat, have a glass of wine or take part in an event. In a region that is strongly characterized by top gastronomy, the two see this as a gap.
This breadth is also part of their calculation. Sylvio Rodrigues explains that they don't want to rely on a few bottles of wine saving the whole bill in the end. And: "It's not fair if individual guests cross-finance the business and others hardly contribute anything. Each person should pay a proportion of what they use - regardless of whether they drink alcohol or not."
The resulting innovation: As a consequence, alcoholic drinks are deliberately offered at a lower price than in comparable establishments, while the prices for food should more closely reflect the actual expenditure.
«It's not fair if individual guests cross-finance the entire operation and others hardly contribute anything.»
Sylvio Rodrigues
Restaurant "From Heaven"
In principle, the model works, says Rodrigues. The business is currently still in a start-up phase. Since the beginning of this year, things have "not looked bad". One thing is clear to him: a return to the classic price structure - with cheaper food and higher margins on drinks - would not solve the economic problems. "We would probably make a loss and would have to cut back on purchasing," he says. And that would have a direct impact on quality.
But even if the model is viable in theory, it still needs explaining in everyday life. This is because guests are guided by the visible product on the plate. They often do not consider or know that a large part of the costs are not incurred in purchasing, but in the business itself. But the fact is: in the hospitality industry, around half of every franc of turnover is now accounted for by staff costs.
What is paid for is therefore not just the product, but all the work behind it. A plate of potatoes for ten francs still seems excessive to the guest. That's why there are more discussions about the food than the drinks, says Sylvio Rodrigues. The latter are also cheaper than elsewhere.
This is where the second catch comes in. If you deliberately offer alcohol at a lower price, you don't automatically attract the desired clientele. Rodrigues says that in the beginning, guests also came who mainly wanted to drink alcohol.
The model therefore has a dilemma: although it aims to be fairer than traditional restaurant pricing, it has to work against consumer behavior that cannot be easily rearranged. "I don't know the final solution yet either," says Rodrigues.
The company is not alone in facing these challenges. The idea has also met with interest - and reservations - outside of Bad Ragaz. Sabrina Grassi, who works in catering operations, believes that cross-subsidization via drinks is still common in the industry, but is much more vulnerable than before for the reasons mentioned.
An approach with cheaper drinks and more expensive food makes economic sense, but is difficult to communicate in practice, she believes. This is because guests rarely judge prices purely rationally.
Especially when food appears to be significantly more expensive, there is a risk that gastronomy as a whole will be perceived as less accessible. On the other hand, a more transparent pricing model could also lead to greater understanding. Provided the quality and experience are right.
However, she believes that the idea of a "fair share" can only be implemented to a limited extent. Gastronomy continues to function via mixed calculations and guests who consume very differently. Initial approaches in this direction - such as in Bad Ragaz - are recognizable in the industry, but are not yet widespread.
The GastroSuisse industry association takes a different approach. A clear decline in alcohol consumption in the hospitality industry is currently not discernible overall, they explained at the request of blue News. The proportion of alcoholic beverages in orders has been stable for years.
At the same time, however, the association also confirms that guests are turning more frequently to non-alcoholic alternatives and that the range on offer in this area is expanding. In other words, alternative alcoholic drinks are on the rise, but real alcohol is not being ordered less overall as a result.
The association has one reservation regarding the redistribution of prices. Models with cheaper drinks and more expensive food could work, but cannot simply be applied to the entire sector. The concepts, target groups and expectations are too different.
«Guests consume very differently - pricing that is completely based on the originator quickly becomes complex and difficult to understand for many.»
Branchenverband «GastroSuisse»
GastroSuisse is even clearer when it comes to the question of "fair" prices: Guests consumed very differently - pricing that is completely based on the polluter pays would quickly become complex and hardly comprehensible for many. This is why the classic mixed calculation remains central for many businesses. Alternative approaches do exist, but they are the exception, not the rule.
And then there is the lack of staff. Work in the industry is considered demanding anyway. Long days, irregular working hours, high stress levels. From Heaven" is trying to counteract this with more predictable working hours and fewer traditional room hours.
In order to function economically, "From Heaven" is open seven days a week, from midday to evening. The aspiration to create better conditions for guests, staff and themselves comes up against the reality of a business that only runs if it is constantly running.
The question of who pays the bill in the end is being renegotiated.
