"Café on Marienplatz Ceases Operations after Nearly Half a Century": The long-standing coffeehouse situated at Marienplatz announces its shutdown following almost 50 years in service.
Munich's Cafe Guglhupf, a long-standing institution in Marienplatz, will close its doors at the end of June after 48 years in operation.
Owner Marc Eisenbarth expressed his regret, having grown up in the cafe, and attributing the closure to a combination of factors. The most notable of these was the exorbitant rent, which had reached over 30% of their turnover—well above the recommended 7-11% by the Dehoga.
The Eisenbarths attempted to revive the business in 2021, modernizing the establishment while maintaining their parents' spirit. However, as an independent business, they found themselves at a disadvantage in the system of gastronomy.
The landlord, Dibag, eventually released them from the contract and remains undecided about the building's future use. In the interim, the Eisenbarths are exploring potential pop-up arrangements for the vacant space.
Other challenges included escalating operational costs, such as electricity and waste disposal prices tripling in recent years. The burden of these costs proved unsustainable for the café, as the Eisenbarths could not pass them on to their customers.
Stiff competition for skilled labor also strained the business. It became increasingly difficult to find and retain employees in a market that values flexibility. The absence of a trained staff member could lead to delays in service, with negative consequences for customer reviews.
Despite the closure, die-hard patrons can still indulge in Guglhupf pastries during Oktoberfest, as assured by Eisenbarth. He also shared that some of their long-term employees have found employment elsewhere in the area, offering a glimmer of hope for the future.
Enrichment Data:- Exorbitant rent costs were a significant burden for the café.- Rising operational expenses, such as electricity and waste disposal, were unsustainable.- Higher costs for ingredients and supplies added to the financial strain.- Steep tax liabilities added to the challenges faced by the business.- Difficulty in finding and retaining skilled workers was a significant hurdle for the café.- Shifts in consumer preferences and habits impacted the business negatively.- Although the café is closing, the iconic Guglhupf pastries will still be available at another location[1].
- The closure of Cafe Guglhupf in Munich is largely attributed to the exorbitant rent costs, which reached over 30% of their turnover, far surpassing the recommended 7-11% by the Dehoga.
- As an independent business, the Eisenbarths found that the system of gastronomy, coupled with costs such as electricity, waste disposal, and tax liabilities that tripled in recent years, formidable competition for skilled labor, and shifting consumer preferences, placed them at a significant disadvantage financially.
