Ivan Tadić: Payment of tips with credit cards will have a multiplier effect

The Forum of Zagreb restaurateurs will open up some very important topics

November 15, 2022

Association of caterers Zagreb this wednesday November 16, 2022, organizes Forum of Zagreb restaurateurs 2022 in the Emerald Hall of the Esplanade Hotel, starting at 10.00:XNUMX a.m..
The Forum will discuss the current challenges and problems in the business of caterers, especially the operational challenges of the introduction of the euro, the possibilities of financing digital and green solutions with funds from the National Recovery and Resilience Plan, the current proposals of the city government on changes to the communal framework for performing catering activities, tax business treatment, labor shortage and many others.

The announcement of the Forum was an opportunity for a conversation with the secretary of the Zagreb Hospitality Association Ivan Tadić about the event itself, but also about the problems that burden the hospitality sector in Croatia.

"Because of the current topics that we will touch on, we believe that the response to the Forum will be very good, and we expect to fill the capacity of the hall, i.e. about 200 visitors. What is important to emphasize is that the topics that will be discussed concern all 4 catering establishments on in the area of ​​the city of Zagreb, but very often spill over to all restaurateurs in the Republic of Croatia, so there is great interest in following the Forum", announced Tadić.

What are the biggest challenges that restaurateurs face?

"In the last six years, restaurateurs experienced the first doubling of VAT in the history of Croatia, when the tax was raised from 13 to 25%, which was then partially returned to 2020% in 13. After that, we experienced a pandemic, then an earthquake in Zagreb, and we are now facing an unprecedented energy and global economic crisis. At this moment, there is little that is not a challenge for us. When we take into account inflation, rising food prices, 60 to 100% growth in business costs, rising energy prices up to 400%, the price situation gas, which we still don't have a solution for, and it is becoming unbearable for restaurateurs, as well as a chronic lack of labor - all this makes our business difficult to sustain."

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In the period of the pandemic, contactless forms of payment in the catering and service industries took precedence, but then the problem of card payment of tips began to appear. Restaurateurs have been pointing to this problem for a long time, and recently a significant shift has been achieved regarding the new regulation related to tips when paying with credit cards. Are you satisfied with that?

"We were one of the initiators of this idea of ​​new regulation, and after several years of work on this issue, we are glad that the Minister of Finance understood our proposal. Not only because of the need to raise the income of our employees, but - on the other hand - also because better motivation for the daily performance of hospitality activities, better quality content and service that we provide in order to become more competitive. Equally important is the ultimate, multiplier effect that will be reflected in the entire economy, because the fact is that our employees will use the money they will earn very likely to flow into our economy through personal consumption. We must admit that we are extremely pleased with the way our proposal has been recognized and we hope that from January 1, 2024, these legislative changes will come to life in their full potential."

 At the Forum of Zagreb restaurateurs, you will touch on several key topics. Who will be your interlocutors and lecturers?

"Lecturers on the topic of the operational challenges of introducing the euro as the official currency in the Republic of Croatia will come from our long-term partners in Monri Payments, a company that is developing Remaris software solutions for caterers. What is important to emphasize on that topic is that in the first two weeks of next year we will face a big challenge during dual circulation: at one point we will receive kuna and return euros. We believe that this will be a rather demanding 'addition' to our daily business. For this reason, the participants of the Forum will be offered certain professional, operational solutions based on the practice of other countries from the time when they introduced euro.

That is, it will be explained how it was simplified in practice. As for digitization and the green transition, we believe that they are extremely important in our daily business and we expect to announce a tender for the withdrawal of these funds for the activities of preparing and serving food and drinks as soon as possible, because such grants in these very difficult circumstances will be very helpful to many restaurateurs welcome to come. What I would also like to point out as a very important topic that we will touch on at the Forum is the current change in the communal framework for catering businesses in the city of Zagreb.

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Currently in the city, there is an open consultation on a proposal to increase the price of parking spaces for the installation of open terraces by as much as 900%. What we definitely want at this conference. is to talk to the representatives of the City and the mayor, and ask them to reconsider such a proposal, because an increase of 900% is huge, and we are afraid that we will not be able to amortize it in our business."   
The Zagreb Catering Association invites caterers to come to the Forum and remind them that admission to the conference is free, but due to the limited number of places, they ask for confirmation of arrival to the email address: ured@zg-ugostitelj.hr no later than the end of the day, November 15, 2022.

Photos: Meruyert Gonull, Pexels.com

November 15, 2022