Kyiv restaurants’ revenue has decreased tenfold: businesses have appealed to the government with demands regarding taxes, shelters, and employee reservations

Ukraine’s restaurant business has found itself in a difficult situation due to Russian shelling, prolonged air raids, and power and water supply disruptions. In September 2026, the revenue of some Kyiv establishments decreased tenfold. Industry representatives are calling on the Cabinet of Ministers to introduce urgent support measures to prevent mass closures of restaurants.

This was reported by Femida.ua with reference to Retailers.ua and the statement of the President of the National Restaurant Association of Ukraine (NRAU) Taras Kovalchuk during a press conference in Kyiv.

The restaurant business is suffering significant losses

According to the National Restaurant Association of Ukraine, the situation in the catering sector continues to deteriorate.

The main reasons for the reduction in income were regular air raids, shelling, power outages, and problems with water supply.

In particular, the Salateira restaurant chain has already stopped operating in the capital. At the same time, the Sushiya chain plans to close five more establishments by the end of 2026.

Representatives of the restaurant industry warn that without state support, the number of closures may increase significantly.

VAT reduction to 7%: what restaurateurs are proposing

The first initiative of the National Restaurant Administration is to reduce the value-added tax rate for restaurant services to 7%.

The corresponding changes are proposed to be introduced within the framework of the special package “City HoReCa Action”, which will provide for updated rules for taxation and official employment.

According to Taras Kovalchuk, a similar VAT rate is already applied to hotel services. In addition, European Union legislation allows the use of reduced tax rates for the restaurant sector.

According to business representatives, such a step will reduce the financial burden on establishments and help preserve jobs.

New shelter requirements proposed to be postponed

The second proposal concerns the requirements for the arrangement of shelters stipulated by the Cabinet of Ministers Resolution No. 1092.

Restaurateurs call for the introduction of new requirements to be postponed for 12–24 months.

According to the NRAU, about 95% of public catering establishments operate in rented premises. Because of this, they often do not have the opportunity to independently equip protective structures.

The association proposes to distribute responsibility for the creation of shelters between the state, local governments, military administrations and entrepreneurs.

Industry representatives also advocate the introduction of grants, tax credits and co-financing programs for the arrangement of shelters.

It is separately proposed to establish transitional operating rules for establishments that do not have access to shelters during the yellow threat level.

Employee Reservation: Why Business Requires Changes

The third initiative is the introduction of a mechanism for booking key employees of small restaurant businesses.

Currently, individual entrepreneurs who have employees cannot use the general booking mechanism.

Industry representatives emphasize that the mobilization of individual specialists can actually paralyze the work of establishments.

In particular, the co-owner of the Pesto Cafe chain Dmytro Pohrebytskyi noted that the loss of a cook, baker or technologist can lead to the suspension of the restaurant’s work.

Currently, the Pesto Cafe chain has 20 restaurants in Kyiv, 18 of which are located in shopping centers.

What economic effect is predicted

According to the calculations of the National Restaurant Association of Ukraine, the implementation of the proposed measures can provide a significant increase in tax revenues from the HoReCa industry.

In particular, representatives of the association predict a possible increase in revenues to the state budget from UAH 8.9 billion to UAH 13.5 billion.

At the same time, without introducing changes, the restaurant business risks facing a further reduction in the number of establishments and jobs.