Sean Gravina calls for ‘breathing space’ for Malta’s catering industry

Chef-patron Sean Gravina, known for leading Crust Bistro and Bar, has raised concerns about the mounting pressures facing Malta’s catering industry, warning that rising costs and what he described as uneven fiscal conditions are putting local operators under strain.

In a social media post published earlier today, Mr Gravina said that while businesses may still be generating revenue, profitability has been severely impacted by escalating expenses. Speaking about discussions he has held with several Maltese business owners in recent weeks, he argued that many operators are experiencing strong activity on paper but are struggling to retain margins due to sharp increases in rent, products, utilities and wages following the COVID-19 period.

He wrote that the current reality leaves many establishments in a difficult position, with income increasingly being absorbed by operating costs rather than translating into sustainable profits.

A key point raised by Mr Gravina was the VAT rate applied to the catering sector. He argued that the current level is too high for the realities faced by the industry and suggested that other countries are exploring reductions or relief measures to support business cash flow.

According to his post, the sector is not seeking special privileges but rather “breathing space” that would allow businesses to remain viable and continue operating sustainably.

Mr Gravina also touched on what he described as a sensitive but important issue relating to taxation. He claimed that Maltese business owners may face a significantly higher tax burden compared to some foreign-owned structures operating in the same market, arguing that this creates an uneven playing field.

While acknowledging that Malta’s tax framework was originally designed to attract major industries such as gaming, aviation and financial services, he questioned how similar dynamics are now affecting the catering sector, where local operators are competing against entities with lower fiscal pressures.

In his post, the chef stressed that open markets and international variety are positive for the country, but argued that local businesses should not find themselves at a disadvantage within their own market. He framed the issue as one affecting livelihoods and families whose income depends on the sector.

He warned that if no action is taken, the catering industry could, in the coming years, become largely dominated by foreign operators, a development he said would risk weakening the local entrepreneurial fabric.

Mr Gravina clarified that his comments were not intended as an attack but as a call for reflection and constructive action aimed at ensuring the long-term sustainability of Malta’s catering industry for local operators as well.

Concluding his message, he urged policymakers to consider measures that would provide greater fairness and support for the sector, saying that now is the moment for stakeholders to speak up and push for meaningful change.