Hamburg Even TV chef Tim Mälzer was hit hard by the restrictions imposed by the pandemic. Today his “Bullerei” is well booked again. The restaurant is located in the former cattle market hall in the neighborhood of Hamburg’s Schanzenviertel. Because the Germans are extremely price-sensitive when it comes to eating out, the restaurateur has adjusted the menu and work steps so that he has so far managed without price increases.
“I deliberately do without Marge,” says the “kitchen bull.” But many restaurants face a dilemma: those who raise prices lose guests and very quickly find themselves in the red. That’s why Tim Mälzer is calling for the temporary reduction in VAT on food to be extended. In an interview with the Handelsblatt, he explains what he thinks of robots in the kitchen and who he wants to hand over his catering business to one day.
Mr. Mälzer, people finally want to go out to eat again after the pandemic. But many restaurants close earlier due to staff shortages or only open four days. How bad is the situation really?
Finding staff is currently extremely difficult – not only in the catering trade, but in the entire service industry. The situation in Hamburg is so precarious that there have even been bounties on new chefs at times.
The other day I wanted to go out to eat just before nine o’clock in the evening. Then it was tough: The kitchen is closing. At first I was angry. But it is also a necessary consequence. Otherwise the whole company would have had to stay up an hour or two longer. A guest cannot eat and drink that much to make it worthwhile.
The catering industry has lost around 300,000 employees as a result of the pandemic. Why aren’t they coming back?
The labor market has changed enormously, young people have many more options with interesting content. In the digital sector, for example, career starters can quickly make a career and earn good money at the same time. And the work-life balance is often right too. But there are jobs that cannot be done nine to five and are still great.
Tim Mälzer founded the restaurant in 2009. It is located in the former cattle market hall in Hamburg’s Schanzenviertel.
As a chef, it is more difficult to get promoted or to find a family-friendly working time model. Poor working time management has always been a problem in the hospitality industry. Success often meant an extremely high commitment – not only from the restaurateur, but also from the staff. The personal environment has often suffered as a result.
“Guests need to lower their standards”
Why is that?
Consumers are partly responsible for this. Because the Germans are extremely price sensitive – especially when it comes to eating out. Guests have to lower their standards unless they want to pay for it. If we restaurateurs could calculate our prices honestly and transparently, we could have done a lot better in our industry earlier. But there has been a rethink here for a long time.
For 20 years, Tim Mälzer (left) has appeared in numerous TV cooking shows. He often measures himself against colleagues.
(Photo: obs)
How do you feel about your own catering establishments like the “Bullerei”?
In the past, it was okay for me as an employer if my employees worked up to 50 hours a week. But even if that was standard practice, it was absolutely wrong. Now I have organized the processes in such a way that we can avoid a lot of overtime. This is complex and requires attention to detail.
“We restaurateurs do not enrich ourselves”
What did you change specifically?
I have adjusted and optimized the menu and work steps. Time wasters such as sauces are now prepared in my external production kitchen. And in the Bullerei there are even more flexible rosters. My aim is that we always have one or two people left over. That way we don’t have to shoulder the extra work on someone else’s shoulders.
How do you finance that – with higher prices?
So far, the bulling has not raised prices – despite high inflation. I deliberately forgo Marge. Paprika now costs two euros a piece, it used to be a kilo. That’s why I try not to use such products at the moment. For certain dishes I have optimized the work steps so that the price can be maintained. With dishes for two people, for example, we save one step. Some things on the menu should actually be more expensive. But I don’t want to expect the guests to do that just yet.
>> Read here: Restaurateurs are struggling with the obligation to use reusable tableware
Do you notice that guests save money when eating out?
The Bullerei is really well booked – despite the price range in which we move. Per capita sales have even increased. Nevertheless, I notice a higher price awareness among the guests.
But does every restaurateur succeed in times of inflation?
No definitely not. I am not presumptuous enough to project my world as a prominent restaurateur onto that of others. Small country pubs and inns need to raise prices. Because most of them have been working at the limit for ages. However, the trust of regular customers is quickly lost when prices rise. We restaurateurs do not enrich ourselves. If a country inn charges two euros more for the schnitzel, it should actually charge eight euros more.
“A restaurateur gets brutally fast into the loss zone”
Every third restaurateur fears slipping into the red because of rising costs. This was the result of a survey by the industry association. Is it really that bad?
The rule of thumb in gastronomy is: 30 percent cost of goods, 30 percent personnel, 20 percent framework costs such as lease and energy, ten percent hidden costs. This leaves an average of around ten percent as a margin. The margin is gone in times of inflation. A restaurateur quickly finds himself in the red.
At some point the cash flow is not enough, the salaries can no longer be paid. Then employees quit and the quality is no longer right. The guests stay away. A vicious circle…
Will the wave of bankruptcies that was already feared during the pandemic come soon?
Gastronomy involves a lot of business risks. If in doubt, a restaurateur would have to consider closing the shop. Namely when a restaurant does not have a clear vision, the lease contract only runs for a few years and there is a risk of slipping into the red.
I also closed my restaurant “Die Gute Nachrichten” in Hamburg for business reasons. The losses from the pandemic in combination with a lease agreement and an extremely high business risk would have turned into a negative business. Then I admitted to myself: it no longer makes sense to continue the operation. In the meantime, the location is successfully run by a friendly restaurateur.
How hard has Corona hit your business?
As an entrepreneur, I never want to be in a situation like this again. The powerlessness was the most frustrating thing. I have parted ways with shops and now focus on individual gastro projects such as Bullerei.
“Why does a company always have to grow?”
How many employees do you still have?
I am currently responsible for around 80 employees. It used to be almost 200. We are currently in a consolidation phase. Even if that contradicts many economic theses: Why does a company always have to grow and earn more? It’s good the way it is. My willingness to take risks, to jeopardize my existence, has been dampened.
In the successful Vox series, Tim Mälzer competes against other celebrity chefs. You travel abroad and have to cook dishes there without knowing the recipe.
(Photo: imago images/Stephan Wallocha)
In the first lockdown, you drew attention to the precarious situation of the catering trade in the show “Markus Lanz” with tears. How do you rate the Corona aid today: are you grateful to politicians?
I am grateful, but the help came much too late. Politicians didn’t cover themselves with glory. She let us stew for a very long time until we finally got “November” and “December” aid. They were great and sometimes even too much. But I would have preferred a more constant solution. If we hadn’t changed our concept, I don’t know if we would have survived.
What does that mean in your case?
For example, my catering company, Speisewerft, is no longer exclusively a catering service. It is now also a production kitchen that pre-produces for the Bullerei, but also for other restaurateurs.
Will the reduction in VAT on food from 19 to seven percent by the end of the year help?
Without the tax cut we would be through. But it should be deferred.
More entrepreneurs in the interview:
Which is worse for the hospitality industry – the pandemic or inflation?
I know a few restaurants that have survived Corona but are now close to the limit. Even established restaurants have to file for bankruptcy.
How will the gastro landscape change as a result of the double crisis? Is diversity declining in city centers dominated by chains?
I can’t think of a small individual restaurateur who would have opened a restaurant in the city center in recent years. The gastronomy in the city center is not dead. But it will mainly only work with concept gastronomy, because the rental costs in the city center in particular have exploded.
During the pandemic, the restaurant set up a delivery service. “Politics let the gastronomy stew for a very long time until we finally got help in November and December.”
(Photo: imago images/Lars Berg)
Which concepts have a future?
All restaurants that build intelligent production processes. The kitchen will also change. Cooking 80 kilos of bones for 24 hours for a sauce – only a few catering establishments will be able to do the effort. Because it is far too personnel-intensive.
“Failure Grounds”
The first robot kitchens and serving robots are now available. A meaningful relief?
There’s a pro and a con. Why should I employ a qualified person to peel kilos of asparagus when a machine can do it? I don’t want to refuse a modern development. I have nothing against sushi belts or robots that bring a drink.
However, there is one area in which I really wish that robots would not take on a dominant role: cooking. I’m looking for personality in dining out. But the technical development is a brutal one. None of us can yet foresee how far the development will progress.
>> Read here: Robots cook at the restaurant chain Yaya
What about your future? Do you want to hand the bulling over to your kids one day?
No, they should go their own way. I have already spoken to my employees: They are the future of my company. Our team works extremely well – also because my people hire new colleagues themselves. The workforce knows best who fits into the team. I better not get involved.
Tim Mälzer’s restaurant is furnished in a rustic, industrial style and specializes in meat dishes.
Many ask themselves: How does Tim Mälzer actually earn more? – with gastronomy or with TV activities?
From the hourly wage with the television. But I still consider myself a restaurateur. The other is like Grandpa’s Fuffi for his birthday. The TV series Kitchen Impossible is a fountain of youth for me. I have to cook dishes without a recipe that I was only allowed to taste once. As an experienced chef, I’m shown every time what I can’t do. This failure is grounding.
Mr Mälzer, thank you very much for the interview.
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