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Why Restaurants, Pubs & Cafés Across Hungary Continue to Disappear

• 29 Jul 2026 6:49 AM

Nearly six years on, Hungary's hospitality sector is still smaller than before Covid, with far fewer catering establishments operating nationwide.

According to an analysis by MBH Bank, Hungary had 41,852 catering establishments operating at the end of 2025, representing an 18% decline compared with 2019.

The biggest losses have been among pubs, cafés and entertainment venues, where numbers have fallen by 35%. 

Restaurants have declined by 16%, while confectioneries have proved more resilient, recording a comparatively modest 8% drop.

The contraction has been felt across almost the entire country.

Budapest and most other regions have each seen around a 20% reduction in catering establishments since before the pandemic, while western Hungary experienced the smallest decline, at 14%.

Although consumer spending on eating out has gradually recovered, the sector continues to face significant challenges. 

Catering businesses have had to contend with rising food prices, higher energy costs, labour shortages and increased wage bills, making it difficult for many independent operators to remain profitable.

This analysis also shows that, after adjusting for inflation, catering industry turnover increased by just 1% between 2019 and 2025, highlighting how weak real growth has been despite the return of customers.

For diners and social drinkers, the figures mean fewer neighbourhood cafés, pubs and restaurants to choose from than before the pandemic, while the venues that have survived continue to adapt through higher-quality offerings, expanded outdoor seating, digital ordering and a growing focus on tourism and expats.

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