Overview
- The Bundestag passed the change and the Bundesrat approved it in December, and it takes effect on January 1, 2026.
- The reduced rate covers meals served by restaurants, hotels, bakeries, butchers, caterers and institutional providers, while beverages stay at 19%.
- The government says the measure aims to bolster the industry and stabilize prices after years of rising costs.
- Large chains such as L'Osteria and Nordsee plan to prioritize price stability over across-the-board reductions, consistent with expert views that tax cuts are only partly passed on.
- Some venues are promoting targeted offers, including free children's meals and time-limited discounts in Dresden, with selective price cuts also described as possible by KFC franchisees.