Owners of outdoor cafes in Riga are cautiously optimistic about the new season / Article

There are no big events that bring a big contribution

Judging by what is happening in Old Riga, the construction of outdoor terraces began already in March, and now, with the onset of warm weather, the outdoor terraces of cafes are increasingly filled with tourists and local visitors. The director of the “Ogle” restaurant, Roberts Kurbaka, admits in a conversation with Latvijas Radio that he is cautiously optimistic about the new season.

“It was already the first sun in March, and people already wanted to sit outside and enjoy the sunny weather at plus five degrees. Time is very important. But compared to last year, this year there will be no big sports events and concerts, which would bring a big contribution,” said Kurbaka.

Kurbaka hopes that in the future the government will support the holding of large and ambitious events in the capital, as the revenues exceed the expenses by about four times. A striking example was the football match between Latvia and Wales, when several thousand Welsh fans came to Riga and circled the city for four days, giving their support to the economy and businessmen. Last year’s Old Riga restaurant awakening week also contributed to the influx of tourists and increased revenues. This year, however, there are no such events, so you have to think about how to attract visitors.

Wants VAT reduction for catering industry

Businessmen are wary of the security situation in the world, when every day is like a new day, not knowing what will happen tomorrow.

“Prices of raw materials are the main thing that will become more expensive due to this situation. Accordingly, prices, labor [izmaksas aug] and there is also prudence,” Kurbaka continues and agrees that it would be important to reduce VAT in the catering industry. “It is 12% that could be channeled into wages, prices.”

Other interviewed cafe owners also agree that VAT for public catering should be reduced. The industry has been trying to achieve this for a long time, but so far there is no result.

However, the number of outdoor cafes in Riga has grown in recent years, according to the information provided by the municipality. Before the “Covid” pandemic, there were 490, in 2022 – 535, and last year already 560 outdoor cafes. This year, 485 applications have already been received and 369 permits for setting up cafes have been issued.

Relaxed requirements for outdoor terraces

Andris Lišmanis, the head of the commercial activity coordination department of the Riga Neighborhood Residents’ Center, says that the municipality has eased the procedure by which entrepreneurs can obtain permission to open outdoor cafes.

“We have developed a typical catalog of outdoor cafes, an entrepreneur can choose one of these solutions and he does not have to prepare documentation, he has to bring it to the building authority, the traffic department for coordination. He can immediately request a permit. This option was used by half of all cafes last year. If a cafe want their own unique solution, they have the opportunity to hire an architect who develops an individual solution,” explains Lišmanis.

For the second year, a project co-financed by the municipality has been operating for those entrepreneurs who want to create a so-called parklet or terrace, which is not placed on the sidewalk, but on the street at the expense of the parking lot and arranged according to standard requirements. In this case, you can receive half of the costs, which do not exceed 10 thousand euros per project. The total funding is 100 thousand euros. Last year, there were four entrepreneurs who took advantage of this opportunity, but this year applications are still pending.

Lishmanis emphasizes that Riga is currently being actively advertised on various foreign channels as a tourist destination, and several basketball and hockey viewing events are planned in Dome Square, which would attract tourists and local residents to go to Old Riga, which would be a good contribution to the national economy.