Restaurant chain shuts down branch in Baden-Württemberg after 26 years
In the heart of Baden-Württemberg, the restaurant industry, particularly in Stuttgart, continues to grapple with the aftermath of the COVID-19 pandemic. The closure of the beloved "Enchilada" restaurant on Eberhardstraße is yet another challenge for the city's dining scene.
Restaurant owners in the region have been battling a host of issues, including a severe shortage of skilled labour, rising operational costs, and the need for greater sustainability. According to award-winning chef Alexander Herrmann, the labour shortage is the most pressing concern, as many workers have left the industry in recent years and have been slow to return[1].
To navigate these difficulties, restaurateurs are adapting their business models. Simplifying menus, focusing on rethinking hospitality, and embedding sustainability and community engagement into restaurant culture are key strategies being employed[1]. By offering set menus instead of extensive à la carte options, restaurants can reduce complexity, control costs, and maintain high quality and consistency, potentially even earning Michelin stars[1].
Innovation and entrepreneurial spirit are also being emphasised, with Herrmann himself exemplifying this by adapting his restaurant’s concept and operations to current trends and workforce realities[1]. Initiatives like Stuttgart’s planned House of Cultures, a centre fostering multicultural exchange and social integration, may indirectly support the hospitality sector by nurturing a diverse and engaged community[2].
As the industry strives to secure its future, it's clear that strategic reinvention is key. This reinvention aims to address staffing, menu design, and customer experience while embedding sustainability and community engagement into the restaurant culture[1].
However, the sector has yet to fully recover from the pandemic as of 2025. Insolvencies in the German restaurant industry rose by 27 percent in 2024, and the trend continues[3]. The persistent trend towards remote work is hurting lunch business for restaurants, and consumers shopping online is causing city centers to empty out, reducing foot traffic for restaurants[4].
The "Enchilada" restaurant's closure on July 31, 2025, is a stark reminder of the ongoing struggles in the industry. The restaurant, part of the "Concept Family Franchise AG" chain, has been a staple in Stuttgart for over 26 years, but the chain does not see a future for its Stuttgart location at this time[5].
The Baden-Württemberg state government has taken steps to improve conditions for restaurant operators by reducing bureaucracy[6]. Additionally, temporary value-added tax reductions were introduced to prevent cost explosions[7].
As the industry continues its recovery, there is hope that the restaurant scene in Stuttgart can bounce back and that no more restaurants have to close their doors. Let's support our local eateries and celebrate the culinary culture that makes Stuttgart such a vibrant city.
References: 1. Source 1 2. Source 2 3. Source 3 4. Source 4 5. Source 5 6. Source 6 7. Source 7
- The persistent trend of remote work and increased online shopping has led to a decrease in foot traffic for restaurants in city centers, adding to the ongoing struggles faced by the industry.
- As small businesses, restaurants are affected by a host of financial challenges, including rising operational costs and the need for greater sustainability, which can be particularly daunting for independent operators.
- To combat these challenges, restaurant owners are focusing on personal-finance strategies, such as simplifying menus to reduce costs and improve consistency, while also emphasizing community engagement and sustainability.
- To support the recovery of the local dining scene, consumers are encouraged to frequent home-and-garden businesses, such as restaurants, and celebrate the food-and-drink and lifestyle offerings that make Stuttgart a vibrant city.
