BUSINESS
EYE ON
HOW PORTUGAL’S RESTAURANT SCENE IS FIGHTING BACK Almost two years after the start of the pandemic, Portugal has managed to retain its status as an attractive culinary destination. Ralph Nader, CEO of Amber Consulting, deep dives into the country’s restaurant scene and explains how it has successfully weathered the storm.
Before inbound and domestic tourism came to a halt, Portugal was on its way to becoming one of the world's top touristic destinations, a testament to its rich and unique cuisine and experiences. With its economy heavily reliant on tourism, the drastic turn of events left some Portuguese restaurants surviving on government subsidies, while others decided to leave the scene altogether. According to a survey conducted by the local restaurant association PRO.VAR, up to 30 percent of restaurants may have closed for good just a couple of months into the lockdown. Other statistics show that by August 2020, 70 percent of restaurants were considering bankruptcy. As the number of restaurants decreased, many farmers and other food chain suppliers had to scale down their production or, in some cases, shut down completely.
Temporary strategic shifts On a more positive note, recovery has already begun, according to a McKinsey study (July 2021). Projections estimate that by 2024, tourism expenditure will increase to reach the same level attained in 2019. Local restaurants have implemented strategic shifts to mitigate the dire consequences of
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the global crisis. Many have reconsidered their target market temporarily, allowing tourists to resume their regular visits. Seeking out cheaper ingredients by sourcing lower quality food is an unfortunate temporary quick-fix strategy that some local restaurants might resort to. Another go-to strategy focuses on home delivery and takeaway as key sale drivers. While it might be tempting for restaurants to do this, results will disappoint, as it is merely a way of minimizing losses. A more reliable and sustainable solution has been to attract local and Spanish diners, as well as Brazilian retirees. Thus, instead of targeting tourists and seasonal visitors, many restaurants have turned their focus toward domestic consumption and strategic neighbors. This, in turn, has affected targeting strategies, including pricing, staffing and their menus. Some Portuguese chefs and restaurateurs have viewed the shift from massive tourism to local consumption as an opportunity to reimagine traditional Portuguese cuisine, allowing the Portuguese to have renewed appreciation for their own gastronomy.
Culinary overview The country is still witnessing remarkable growth in the number of new restaurants despite the ongoing pandemic. Many bloggers recommend traveling to Portugal exclusively for its food, and it has been advertised as Europe’s best destination for foodies. Portugal’s amazing weather, combined with its breathtaking landscape, exquisite cuisine and warm hospitality, have made it a popular holiday and retirement destination, and an attractive choice for culinary investments as well.
Signature foods Portugal is known for its diverse cuisine, including seafood, and fine wine. Famous appetizers include clams (Amêijoas) and Cacholeira Branca de Portalegre, which are sausages made from the fat, liver, offal and blood of the Alentejo pig. Wellknown snacks or tapas are referred to as “pesticos.” Renowned main dishes include cod (Bacalhau), which is widely classified as the national fish, grilled sardines (Sardinhas Assadas) and bifana (pork), a well-known sandwich which is considered a proper meal. Those with a sweet tooth will savor the custard tarts (Pastéis de Nata), the rice pudding (Arroz Doce) and galão, the local milk coffee.
