Eventrend, a group of companies specialising in hospitality and event organisation, has in its portfolio establishments such as Gundel Restaurant, the New York Café, the Centrál Grand Café and Bar, and Séf Asztala; what’s more, they closed last year with record-breaking results that surpassed even the figures for 2019. We spoke to owners Zoltán Kőrössy and Gábor Nagy about the ingredients of their success, inflation, the differences between opportunities in Budapest and the regions, and the capital’s gastronomic appeal.

How did the group perform last year, in 2023? 

Gábor Nagy: Each of our companies and projects has a comprehensive plan. Last year, however, we found that we had far exceeded our pre-set targets and expectations; it was a very successful, record-breaking year for us, surpassing even our peak results from 2019. This was essentially made possible by the fact that we weathered the Covid pandemic by retaining the key personnel who are vital to our company’s operations. Together with those superb colleagues – the very same people with whom we had managed the business in previous years – we were able to rebuild the business in the post-crisis period. The results are reflected in the financial figures, but I believe that behind them lies a great deal of hard work and a strong team – very good people – as well as a shared awareness that, working together with our leaders, we have strived to carry our values forward into the present period.

Zoltán Kőrössy: We have indeed had a very successful and outstanding year, but it is important to recognise that 2023 was a turbulent year for the hospitality and events sectors. Three factors shaped developments in our sector: the energy crisis, inflation and the recovery of tourism. In a sense, these were nothing new, as we have become accustomed over recent years to competing in a field where the rules are constantly being rewritten. All foreign experts had predicted that by 2026, conditions and figures would return to pre-Covid levels; however, it is now clear that this recovery has been much faster. As a significant proportion of our businesses’ revenue is linked to tourism, the return of tourist groups has in itself generated demand. In rural areas, however, the situation is quite the opposite: whilst the decline in demand there was only temporary during the Covid pandemic, now – at a time when, in many respects, we should be relying on tourism – the impact of inflation can be truly devastating in places where this is not possible. The cost of raw materials has risen far above the rate of inflation, which is a significant expense; in the rural hospitality sector, this cannot be offset by raising prices, so serious difficulties may arise. Unless a brand or the customer experience is exceptional, catering establishments will, unfortunately, have to face a decline in business. 

So did catering establishments that rely on tourists, so to speak, manage to avoid the problem of inflation? 

Zoltán Kőrössy: Of course, this is a problem that everyone has had to face and will continue to face; however, from a tourism perspective, it is fortunate that inflation in the hospitality sector has been high across the whole of Europe, so prices have actually risen significantly in the very countries from which tourists come. Consequently, the vast majority of visitors to Budapest are already used to the fact that services are becoming more expensive where they live, and the same is true here – though still at an acceptable level.   

As well as inflation, the energy crisis also appeared to be a rather serious problem. 

Zoltán Kőrössy: The energy situation looked much worse in the run-up to this than it actually turned out to be. There are certainly places where, for example, district heating is in use and they still have to operate at eight times the normal price, but I think that, provided one’s procurement policy wasn’t completely botched, this problem wasn’t insurmountable. It was frightening and painful in the short term, but overall, the situation wasn’t as bad as might have been anticipated. 

What about those establishments that cater exclusively to Hungarian guests – that is, those mainly in rural areas – which rely largely on domestic trade for their livelihood?

Gábor Nagy: Previously, the balance across the entire industry had been thrown off, whether in relation to inbound or domestic travellers. However, we are now seeing that this has been restored as far as international tourism is concerned, and the question is when the balance between supply and demand for domestic tourism will be re-established. For the time being, we do not yet know or can see where the habits of domestic travellers will stabilise, so for the moment we may still be seeing a decline. 

To what extent is the labour shortage currently a problem in the hospitality sector? 

Gábor Nagy: It is a positive development that a significant number of workers lost to Covid are now returning to the sector in large numbers, meaning that far more people are applying for job vacancies these days than in recent years. This is obviously partly due to the closure of certain establishments, but we are also seeing people returning to the hospitality sector from other sectors – people for whom this is, after all, their life’s work, and who now realise they can work safely in this field. In our experience, those with a strong employer brand have no problems with recruitment. Quantity is no longer an issue in this part of the market, so quality can now improve too, as there is no longer any pressure to fill every position, even with unsuitable candidates. 

Zoltán Kőrössy: We’re also finding that, once again, many young people want to become chefs, chefs and pastry chefs – and this is largely influenced by both traditional and social media, as teenagers are exposed to countless programmes and content that make these careers appealing to them. The hospitality industry has a unique charm, as in this field you can, so to speak, create something tangible out of nothing in the blink of an eye, which brings a great deal of joy and satisfaction. Anyone who is passionate about this sector is probably because they have a certain degree of adrenaline addiction; from this perspective, I would compare the hospitality industry to extreme sports. Perhaps waiting is a profession that is becoming less and less popular these days, so it is now up to the industry to make it exciting for young people once again. 

From a gastronomic point of view, how attractive a destination is Budapest these days? 

Zoltán Kőrössy: It is not yet really possible to say that a large proportion of visitors choose Budapest as a destination solely for its gastronomy. We can clearly see that gastronomy is part of the culture and an integral part of city tourism, which is possible because the Hungarian capital has, for years now, been on a par with the gastronomic standards of major European cities. All in all, it’s fair to say that it’s hard to have a bad experience in Budapest these days. The problem that plagued the domestic hospitality industry for quite some time – namely, that in many places the food was poor or businesses tried to rip off tourists – has, fortunately, now been eradicated. This is important because it would significantly damage the city’s reputation. Looking at the venues in our group, we can see that the New York Kávéház is an institution in its own right, which travellers place in the same category as built heritage destinations and which can compete with the must-see attractions, but the Gundel Restaurant and the Centrál Grand Café and Bar are also in this league. 

Gábor Nagy: The number of Michelin stars is always an important yardstick for gastronomy – and therefore for a city – but such restaurants serve only a fraction of the number of people compared to the larger-scale establishments mentioned, so their responsibilities are different too. Although the Michelin star is the Formula 1 of the hospitality industry, the impression formed in a tourist’s mind – in terms of the country’s image and Budapest’s image – is shaped far more by those places that cater for large numbers of guests. Every day, we provide thousands of people with an experience of what hospitality in Budapest is like – that is our responsibility.