Germany's most ancient butcher shop on Merz administration laments: "Nation sliding into decline"
In the heart of Berlin's East district of Weißensee, Oppen's Diner, the city's oldest butcher shop established in 1779, is navigating a challenging economic landscape. Founded by Jörg Oppen in 1989, the family business has become deeply interwoven with the local community.
However, the current economic climate is putting pressure on small businesses like Oppen's Diner. According to recent predictions, 14 percent of Berlin's catering businesses are predicted to not survive the next twelve months economically. Oppen's Diner has experienced sales losses due to the increasing reluctance to buy, a trend reflected in the broader SME sector.
The reasons for this economic strain are multifaceted. The turnover of gastronomy in Berlin has significantly decreased in recent years, especially due to the Corona pandemic. Additionally, the density of regulations in Germany has increased significantly in the past ten years.
One of the key challenges facing small businesses is the rise in energy prices. Oppen's Diner, although not classified as an energy-intensive company, has seen a substantial increase in operating expenses due to higher energy costs. These costs are up to three times those in the US and double those in France, largely due to strict EU climate policies and the Green Deal agenda.
The rise in energy prices is compounded by increases in the minimum wage. For businesses like Oppen's Diner, reliant on hourly workers, this squeeze on both energy and labor costs forces a delicate balancing act between price increases and customer retention.
Despite introducing various subsidies and relief measures, the German government's efforts have not been enough to alleviate the financial burden for small businesses. Oppen criticises the government for not paying out the promised climate money, despite introducing a CO2 tax.
The situation is further complicated by the fact that immigrants from Africa and the Middle East are not allowed onto the German job market, leading to frustration among the German population. This, combined with the loss of street cafes in Weißensee, as the district undergoes changes with fewer street cafes and more Spati, barber shops, doner shops, and stores like Tedi and MacGeiz, is a concern for Oppen.
Despite these challenges, Oppen remains optimistic. His motto for the future fits with the core business of the oldest butcher shop in Berlin: "We'll keep muddling through!" His son is expected to take over the family business in the future, ensuring the legacy of Oppen's Diner continues in Berlin-Weißensee.
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- The economic and social policy, specifically the rise in energy prices, poses a significant challenge for small businesses like Oppen's Diner, as they grapple with increased operating expenses that are up to three times those in the US and double those in France, primarily due to strict EU climate policies and the Green Deal agenda.
- In the broader context of the SME sector, the current economic climate is showing a trend of sales losses, as businesses struggle with an increasing reluctance to buy, leading to a predicted 14 percent of Berlin's catering businesses not surviving the next twelve months.
- Political factors, such as the inability for immigrants from Africa and the Middle East to access the German job market, along with changes in the district's landscape, causing a loss of street cafes and an increase in other types of businesses, create additional concerns for small businesses like Oppen's Diner, despite their optimism for the future.
