Tuesday, March 4, 2025

The State of the Local Catering Industry

Michelle Muscat - ACE President

Aqra wkoll

The catering industry is one of the most dynamic, fast growing sectors in Malta. Truly so, because we work in a fast paced industry that operates in a fast paced context characterised by fast changing customer trends, tastes and habits. A dynamic market where customers predominantly expect sustainable solutions, flexibility, personalization, and a wide range of offerings for every taste – from economical and simple options to high-end restaurant catering. A constantly changing market in which the catering industry stands at the cusp of a transformative era marked by technological advancements, a steadfast commitment to sustainability, and an ever-growing palette of global flavours. An industry which is well coined in the words of Joe Bastianich – “The pressure, the heat, the almost impossibly fast pace at which you need work – this is the reality of working in the catering industry.”

A fast paced catering industry where irrespective of size and nature, the challenges are quite the same for all establishments – a scarcity of good human resources, a sudden increase in price of raw materials, a constantly changing consumer behaviour as well as a host of bureaucratic challenges just to mention a few. An industry which also has to face the challenges brought to the table with a growing reality of “enormous oversaturation” , with the introduction of the skills pass and BCRS system as well as the ongoing licensing problems. And whilst the industry is all in favour to ensure Malta’s 2030 energy and climate targets. Whilst the industry is all in to ensure the government reaches its goals set in Malta’s Tourism Strategy 2021 – 2030, there are issues written on the wall that cannot be addressed by the industry alone. Truly so, because the challenge of quality, the constantly growing skills gap and the over dependence on foreigners, primarily TCNs is an issue which must not be carried by the industry alone. It is important to note that the need for quality human resources is a must for a country which is currently seeking to target key niche tourist segments. An integral element for an increasingly demanding and knowledgeable local clientele. A major challenge too for a sector which includes listed Michelin Star and Michelin Guide restaurants.

It is fair to say though that the industry would be in a much worse state if the government wouldn’t have over the past years intervened during the COVID-19 pandemic by means of the COVID Wage Supplement. The industry would be in much dire straits if the government would not have extended its energy, water, fuel, and grain subsidy programs. Vital support which helped cushion the impact of an unstable international environment as well as inflation. But, the challenges the industry is currently facing, calls for more to ensure the sustainability of all operators in the catering industry.

This is the state of play of the local catering industry. A scenario which is often not known to the general public or worse misunderstood by consumers. A state of play which on the other hand though, highlights the fact that notwithstanding the challenges, the industry is alive and has achieved so much over the years. Having Michelin star restaurants on the island as well as the inclusion of local restaurants in Forbes Travel Guide’s Rating and in the Michelin Guide list are a clear proof of the local catering industry’s potential. Yet the local catering industry’s achievements are not only limited to that. Its achievements are also attributed to the success of various operators in Malta and also abroad. It is also attributed to all operators who have gone through thick and thin and are still here alive and kicking.

Notwithstanding all, the industry has constantly proven its ability to be dynamic and its ability to adapt to change. Above all, the industry has time and time again shown its ability to be resilient. Truly so because there is no playbook for how to deal with challenges and uncertainties. But one theme that has emerged through the uncertainty is resilience — and the people who have been operating in the local industry have it in spades. Yes, a resilience we operators have built when meeting the unexpected, when dealing with uncertainty. A resilience we built by thinking creatively and by often pivoting on a dime.
And the current times call on all the operators to be once again resilient, to be perseverant, to be innovative, to think out of the box and if need be without the box. Above all, to upend the way they do things instead of trying to apply an old model to a new world. And the industry will do so because it is no stranger to adjusting to new paradigms. Yet embracing change is a big part of resilience, but it’s just one part. The rest comes down to the fundamentals: good business planning and great relationships.

But all this cannot be achieved alone. It requires a collective effort from the industry together with the government, the opposition and all stakeholders. It requires us, the Association of Catering Establishments to lead the way for a serious discussion on a way forward which must tangibly ensure the long-term sustainability of such an integral component of the Maltese economy. A key moment for the Association not only because it coincides with its fifth anniversary but also because of the key role it is called to play in the years to come so as to ensure the sustainability of the industry. An industry which will surely play a key role in the government’s Vision 2050.

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