Restaurants battle rising costs and ‘price gouging’ criticism
ISTANBUL
Türkiye’s restaurant industry is grappling with soaring inflation, rent, energy and food costs, while facing growing public resentment over menu prices, according to the Istanbul Chamber of Commerce’s (İTO) Restaurants and Food and Beverage Committee.
Industry leaders warn that without urgent support, closures and job losses could accelerate.
The committee, which has been studying the sector for the past three years, presented some sobering figures.
According to the Union of Chambers and Commodity Exchanges of Türkiye (TOBB), 2,136 restaurants shut down in 2023, and the number of closures rose by 21.4 percent in 2024.
Committee Chair Ebru Koralı said more than 100,000 food and beverage businesses operate nationwide, with nearly 20,000 in Istanbul alone.
But the mood in dining rooms has shifted. “Customers now come in on guard, reacting to everything. They look at us like robbers,” she said.
“After the pandemic disrupted supply chains, rent burdens piled on. Almost every business is under severe strain. Yet restaurants are where people have celebrated their happiest moments — engagements, birthdays, anniversaries,” Koralı noted.
The committee stressed that the “overpricing” narrative ignores the reality that prices are driven by cost inflation, not arbitrary markups.
Koralı pointed to rent increases of 30 to 40 times in some cases, alongside surging energy bills and ingredient costs. “We are in constant contact with every part of the supply chain. For the sector to remain sustainable, pricing policies must be reassessed and updated,” she said.
Committee member Yücel Özlap painted a stark picture of operational pressures. In the past three years, 15–20 percent of registered restaurants have shown no activity, with many unable to close because the cost of shutting down is higher than staying open.
“Two years ago, we paid 10,000 lira for electricity; now it’s 110,000,” he said. “Many are simply waiting it out, hoping conditions improve.”
The financial squeeze is compounded by a reputational challenge. Many operators avoid admitting how bad business has become, fearing customers will assume quality has dropped. But the committee warns that without intervention, the sector’s contraction could lead to significant job losses.
Koralı called for emergency financial support mechanisms and job protection measures to be implemented quickly.
“We are not talking about luxury here — we are talking about preserving a sector that is part of the country’s social fabric,” she said.
Data from the Istanbul Chamber of Commerce (İTO) showed that consumer prices in August rose 1.84 percent from the previous month, bringing the annual inflation rate to 40.83 percent.
In Türkiye’s largest city, prices for restaurants and hotels increased 0.39 percent month-on-month and 35.5 percent year-on-year. This category has seen a 23.5 percent rise compared to the end of 2024.
