Russia's Dining Decline: The Economic Impact of Cafe Closures

Russian restaurants and cafes are closing at a fast pace amid a sluggish economy. High costs and reduced consumer spending in Moscow highlight the strain, with closures seen even in affluent areas. Despite resilience against sanctions, rising taxes and costs weigh heavily on the economy.

Restaurants and cafes across Russia are shutting down at an unprecedented rate since the Ukraine conflict began four years ago. Even Moscow, known for its affluent consumer base, isn't spared as spending stalls amidst rising costs and economic sluggishness.

The widespread closures, spanning from Moscow to Vladivostok, point to a significant slowdown in Russia's economy, valued at $2.8 trillion. Although the economy has shown resilience against Western sanctions, soaring ingredient prices, increased rent, and higher taxes are crippling businesses.

Data indicates a sharp drop in consumer spending on dining, as Russians tighten their belts. Despite past growth, the current economic climate, impacted by high interest rates and taxes, projects only a 1.3% growth this year compared to previous years.

(With inputs from agencies.)