Mövenpick hurt by German sales slump
Poor trading in Germany accounted for a huge drop in profits for Swiss hotel and restaurant group Mövenpick in the first half of this year.
Total sales fell by 10.7% to Sfr577.7m (£251.4m), with profits before tax at Sfr13.8m (£6m), compared with Sfr25.6m (£11.1m) the previous year.
Hotel sales dropped by Sfr34.4m (£15m) to Sfr188.3m (£81.9m), while sales in its restaurants earned Sfr280.3m (£122m). This represented a drop of Sfr29.6m (£12.9m), compared with the same period last year.
The group has 119 restaurants, 35 in Germany.
A spokeswoman said that lack of consumer confidence in the country, and the introduction of the euro, was to blame for the drop. She said: "People believe that prices have increased since the introduction of the euro. The economic climate in Germany has been a main factor, and people are reluctant to go out."
Mövenpick owns 44 hotels and resorts in 12 countries.
Source: Caterer & Hotelkeeper magazine, 15-21 August 2002
