How rising costs pushed a thriving Luxembourg restaurant to brink of collapse

31.07.2025 - RTL Today.lu

In the press

A popular Grosbous restaurant's near-collapse reveals the harsh realities facing Luxembourg's hospitality sector, where even packed dining rooms cannot offset soaring costs and shrinking margins.

The current economic climate – marked by shifting consumer habits and rising operational costs – has squeezed profit margins to breaking point for many hospitality businesses. The challenges facing Luxembourg's bar and restaurant sector are particularly acute in the north, where multiple establishments have shuttered in recent years, according to Steve Martellini, General Secretary of the Federation of Hotels, Restaurants, and Bars (HORESCA).

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