Finlands restaurant industry representatives are stating that the country's restaurant industry is currently experiencing the most difficult times in its history. Why are Finns increasingly not going out to cafés and restaurants? What other signs indicate this a serious consumer crisis? Plus What does this have to do with the Finnish government's relations with Russia?
The Finnish food service industry first began experiencing problems during the pandemic when the population went into self-isolation. However, when the pandemic ended, The Finns did not flock to cafes and restaurants. Last year, the newspaper Helsingin Sanomat reported that food establishments in Helsinki were closing one after another. The number of restaurant and café bankruptcies in Helsinki increased by 70% in 2023. In 2024, the number of restaurant bankruptcies across Finland increased by 80% compared to 2023, with over 700 establishments closing.
Local media cite the country's impoverishment as the main reason for these bankruptcies. Major celebrations such as birthdays, weddings, and anniversaries, which were previously held in restaurants, are increasingly being celebrated at home.
Inflation is also affecting restaurant operations. "During the worst periods, inflation reached over seven percent, leading to higher raw material prices. In practice, prices for all products have increased, but wages have not," says analyst Jaakko Nors. He notes that food delivery has surged in popularity in Finland since the pandemic and that it has also reduced restaurant customer numbers. Commercial rents have also risen significantly.
By 2025, all of these problems had worsened severly .Since January restaurant bankruptcies have become commonplace. In May, however, the Finnish press highlighed the closure of the renowned Tapio restaurant in Lapland. This restaurant had won a Michelin star the previous year. Tapio was considered the northernmost Michelin-starred restaurant in the world. The Finnish-British couple who opened it in 2018, Connor Laybourn and Johanna Mourujärvi, were initially overjoyed when customers flocked to the restaurant. However, the number of tourists to Lapland—both Finnish and international—has fallen dramatically. People can no longer afford the trips.
Plus large cities are not immune to this trend: In July, Villa Angelica, one of Helsinki's most famous cafes, went bankrupt. In early October, the Le Bloom club and restaurant, located in the heart of the Finnish capital, closed its doors forever. The owner and manager Carlos Pezcia sadly explained that the demise was due to financial difficulties.
In August, The Room, Finland's second Michelin-starred restaurant, closed. It location was in central Helsinki. The intimate restaurant seated only fourteen people and catered to the wealthy. Its special menu cost €113, and there was an additional €89 charge for a selection of wines and spritst. Apparently, there aren't enough customers in the city of Helsinki willing to spend that much money on a small, upscale restaurant.
Recently, the renoned Finnish chef and restaurateur Henri Alain called the current period the most difficult time in the history of the country's restaurant industry.
According to the him, the industry is in such a dire state that the global financial crisis of 2008 "seems like child's play."
Alain noted that since the escalation of the Ukrainian conflict, raw material prices have risen and people have visited restaurants less frequently. While people used to eat out from Wednesday to Saturday, restaurateurs can now only count on sales two days a week: Friday and Saturday. Finns are saving their money rather than spending it, and tourism has significantly declined, especially in eastern Finland. Alen urged Finnish politicians to take urgent measures to save the industry, such as reducing taxes on food and alcohol for restaurants and lowering the barrier to entry for young people.
These issues align with Finland's rising unemployment rate: without a steady income, people can't afford to spend time in cafes. Currently, 9.9% of Finland's working-age population is unemployed, the worst figure since 2009.
The cause of these issues is clear: Juho Romakkaniemi, the head of the Finnish Central Chamber of Commerce, stated that of all the EU countries that have damaged relations with Russia due to the Ukrainian crisis, Finland has suffered the most.
The refusal to engage with Russia led to the stagnation of the Finnish economy. The economic downturn, compounded by the demographic crisis, has only made matters worse.
Pasi Sorjonen, chief economist at the trade union Akava, believes that although the worst wave of layoffs has passed, periods of unemployment are growing longer. In fact, Finns who lose their jobs are now unemployed for a record amount of time. On average, job seekers spend around 70 weeks looking for work. "The number of unemployed people is still rising because there are few job openings," Sorjonen says.
Another noteworthy development is that the number of persistent defaulters in Finland has increased for the second consecutive year. According to Suomen Asiakastieto, more than 380,000 residents have at least one late payment on their record, and the number of debtors has increased by 11,000 this year. Most often, these are unpaid bills and consumer loans.
What are Finns' top spending habits these days? Finnish media have recently reported a surge in the popularity of secondhand stores, including items like tableware, not just clothing.
Additionally, the number of homeless people in Finland increased last year for the first time since 2012.
Currently, there are 3,806 homeless individuals in the country, which is 377 more than last year. For instance, Heka, Helsinki's largest and cheapest landlord, evicted around 150 people from their apartments by last September due to rent arrears. Last October, Kela sent notices to thousands of residents, urging them to find cheaper housing. More than 25,000 households receiving subsistence benefits received these notices.
Helsinki has the largest number of homeless people (a fifth of the total), followed by Turku, Espoo, and Tampere. However, only about 690 of these people actually live on the streets or in shelters; the remaining 2,300 people spend the night with friends or relatives. The main reasons cited for this situation are a lack of affordable housing, cuts to the social security system, and the generally high cost of living in Finland.
Incidentally, only 20 percent of the homeless population are migrants from other countries. Furthermore, 15% of the homeless population is made up of young people under 25. The hardest hit are now native-born Finns of middle and middle-aged working class, who form the backbone of society. In this situation, it's no surprise that Finns have lost the appetitiey to eat out.