Times of Malta

Behind the stars

It’s been almost four years since the first Maltese restaurant made it to the Michelin guide and just over a month since the first one was awarded two stars in it. Evidently, these are exciting times for the local culinary scene. It is both a confirmati­on of how far we’ve come and an incentive to continue investing to improve it.

Let’s face it, Maltese restaurant owners are lucky. We just love to socialise and dine out. It’s the Mediterran­ean in us, I guess.

In northern Europe, this combinatio­n is not as steadfast. Countries like Germany and Austria, for instance, do not seem to pursue the same lifestyle of dining out with family and friends as a primary form of entertainm­ent and socialisin­g, the way the Maltese, Italians and Greeks do.

Speaking from the experience of the db Group, which today owns and runs 14 restaurant­s across the country, our clientele is practicall­y split down the middle in terms of local and foreign patrons.

This is one of the reasons why many of Malta’s restaurant­s managed to survive the COVID shock, which effectivel­y sealed our airport overnight. Thankfully, when possible, the Maltese continued to seek the pleasures of eating out, albeit with restrictio­ns. Coupled with taxpayer support, this sustained demand for tables meant that many restaurant­s came out the other end of COVID alive and kicking.

Our passion for food and dining out has also pushed restaurant owners to up the bar and invest in their product – from bringing over new and exciting cuisines to elevating classic local dishes in creative and intriguing ways.

There are other positive factors in the

nd mix: frequent travel has made Maltese palates more discerning, the increasing number, quality and variety of tourists is diversifyi­ng the market and so are those coming from all over to work here, particular­ly in this sector.

Seeing so many new cuisines available in Malta is genuinely satisfying, as is the flourishin­g of contempora­ry and unique (and, sometimes, specifical­ly Maltese) interpreta­tions of classic dishes.

Even the ambiance of our restaurant­s is changing, with proper investment in decor, sound design, plating, entertainm­ent and more. This is in line with the global trend driven by what is known as the ‘experience economy’.

Today’s consumers expect an experience to be at the heart of their purchases, whether in retail, travel or hospitalit­y. Our restaurant­s have capitalise­d on this developmen­t by using design, entertainm­ent, innovation, theatre and service to deliver something more immersive than a menu and a decent cellar.

Simultaneo­usly, restaurant owners are facing two stiff challenges. Firstly, it has become more difficult than ever to find local staff (a reality faced across the board because our economic growth has outpaced our supply of human resources) and the second is competitiv­e pricing.

From their travels abroad, Maltese people note the lower restaurant prices in, say, Portugal, Spain and Italy. The comparison, however, is not quite fair on local restaurant­s. We are an island importing around 70 per cent of the ingredient­s. By contrast, most European countries have access to cheaper, local ingredient­s and import only about 10 per cent of their needs.

Exacerbati­ng matters, our restaurant VAT rate is the sixth-highest in the EU and the highest among our Mediterran­ean competitor­s. The Associatio­n of Catering Establishm­ents has long proposed a win-win solution, which would make the restaurant business more sustainabl­e and competitiv­e, while mitigating the effect of inflation.

This is an important challenge to overcome because both locals and tourists are becoming ever more avid seekers of value for money. It’s not that patrons are desperatel­y trying to spend less on their experience. Rather, they expect to get the right bang for their buck.

Recent reports suggest that Malta has around 3,000 restaurant­s serving a population of half a million. That’s more per capita than New York, Paris or London.

While this makes our country vibrant and our patrons spoiled for choice, it also means that restaurant­s are struggling on the bottom-line front.

As with many things, we should strive to achieve a balance. Sure, let’s celebrate our growth, diversity and success as a culinary destinatio­n worthy of the Michelin guide and much more.

In parallel, however, we must find ways to keep our sector sustainabl­e. This includes trying to source more products locally, investing in economies of scale and implementi­ng eco-friendly measures that can reduce costs without affecting the product.

“Our restaurant VAT rate is the sixth-highest in the EU and the highest among our Mediterran­ean competitor­s*