Traditional Hospitality in Bilbao Faces Unfair Competition from Supermarkets

Restaurateurs claim it is impossible to compete with the unbeatable prices offered by supermarkets, threatening the future of the daily menu.

Generic image of a microwave oven inside a supermarket, with blurred shelves of prepared food in the background.
IA

Generic image of a microwave oven inside a supermarket, with blurred shelves of prepared food in the background.

Traditional hospitality businesses in Bilbao are expressing concern over the highly competitive pricing offered by large supermarkets, with industry professionals decrying unfair competition that jeopardizes the future of the daily menu.

Natxo López, manager of Kasko restaurant, has indicated that the spaces adapted as dining areas in some supermarkets, complete with microwaves, are significantly impacting his business's finances. The restaurateur, with over three decades of experience, warns that if this trend continues, the daily menu could disappear in Bilbao.

"Since some supermarkets started setting up dining areas, with microwaves and so on, we have stopped serving many meals. If this continues, the daily menu will disappear in Bilbao."

Natxo López · Manager of Kasko restaurant
López emphasizes that price is the key factor, as it is “impossible” to compete with establishments offering menus for as little as four, five, or seven euros. Meanwhile, traditional restaurants strive to maintain the same quality of service for their patrons. Despite the CPI rising by almost 30% in recent years, they have not increased daily menu prices, deeming it “unfeasible” otherwise. He also attributes the decline in demand to changing habits, such as late afternoon socializing and teleworking, which contribute to emptier premises at midday.
Furthermore, he questions the sanitary conditions of these adapted dining spaces, where, he claims, cross-contamination could occur. “How often are those microwaves cleaned? And the tables? When you go to a restaurant, there's a waiter who cleans the space between diners,” he asks.
Yolanda Peña, from La Catedral bar, believes that hypermarkets are employing an unfair competition strategy. Her establishment, strategically located opposite San Mamés stadium, is affected by the proximity of a Mercadona branch in Bilbao, which attracts a significant flow of customers, particularly university students from the School of Engineering, due to its low prices.
At Izaro cafeteria, located within an office complex, the decrease in customers opting for the “supermarket menu” is also evident. Zuriñe Rodríguez, the manager, laments that supermarkets operate with such low prices, harming any nearby establishment. Like Natxo López, she believes the traditional daily menu is on the verge of extinction, as rising product prices force an increase in dish costs. She points out that often, suppliers set the prices, ultimately impacting the customer, due to the high operating expenses of the premises.