Munich Pubs Slash Beer Prices After VAT Cut
Munich, January 29 – In a surprising move, several Munich pub owners have decided to lower their beer prices by up to €1.20, effective from mid-January. This decision comes in the wake of the federal government’s reduction of the value-added tax (VAT) on food from 19 to seven percent, which took effect at the beginning of the new year. While the VAT cut directly applies to food, pub operators are indirectly passing on the savings to beer consumers.
Significant Price Drops in Popular Establishments
Among the establishments leading this initiative is the Wirtshaus “Tegernseer Tal”. According to their social media channels, this action is a direct “response to the VAT reduction on food.” Since January 16, a half-liter of Hopf Helle or Dunkle Weiße, which previously cost €6, is now available for €4.80 – a substantial saving of €1.20. Similarly, the price for a half-liter of Tegernseer Hell has dropped from €5.70 to €4.50.
Another prominent establishment, Haxnbauer im Tal, is also participating. Here, a half-liter of Hacker-Pschorr Hell is now 90 cents cheaper, priced at €4.80. White beer at Haxnbauer will also see a 90-cent reduction, costing €5 until the summer.
Both “Tegernseer Tal” and Haxnbauer are operated by Constantin Wahl, with Sebastian Kuffler co-managing Haxnbauer. On their social media platforms, they state that this initiative is an attempt “to make Munich’s gastronomy more attractive for Munich residents and their guests again.”
Other Pubs Join the Trend
The trend of lowering beer prices is not limited to Wahl’s establishments. According to the portal t-online, the Wirtshaus Eder in Westend is now offering a half-liter of Augustiner for €4.50, down from €5.10. The Wirtshaus Fesch in Müllerstraße has also reduced its Augustiner price to €4, from the previous €4.50.
Why Beer Prices, Not Food?
Interestingly, the price reductions in Wahl’s pubs apply to a range of beers, including light and non-alcoholic options, but not to food items. The reasoning provided is that food prices have not seen increases for a long time, “despite constantly rising procurement costs for food.” This suggests that the pub owners are absorbing some of the food cost increases while using the VAT reduction as an opportunity to make beer more affordable.
Temporary Measure with Potential for Extension
Currently, the reduced beer prices are set to last until June 30. However, Wahl has indicated that an extension is possible, stating that “guests themselves have it in their hands whether the hosts will extend the campaign beyond the summer.” This implies that sustained customer support and positive feedback could influence the longevity of these lower prices.
Background: Declining Beer Consumption and Rising Costs
Beer, traditionally considered Bavaria’s national drink, has seen a decline in consumption for several years. This trend, coupled with rising production and raw material costs, has led to higher prices for the traditional Bavarian beverage. The federal government’s decision to cut VAT on food was primarily aimed at helping restaurateurs maintain their overall price levels. However, these Munich pubs have gone a step further, using the opportunity to offer more competitive beer prices.
This initiative by Munich pub owners highlights a proactive approach to attract customers and revitalize the local gastronomy scene, offering a welcome relief to beer enthusiasts in the city.
Source: https://www.augsburger-allgemeine.de/bayern/muenchen-diese-muenchner-wirte-senken-ihren-bierpreis-bis-zu-1-20-euro-billiger-113316099
