Analysis of the Restaurant Industry’s Economic Activity in the Republic of Slovenia
a Retrospective of Development
Keywords:
restaurant establishments, restaurant industry, Slovenia, business performanceAbstract
The paper analyses the development of commercial restaurant industry in the Republic of Slovenia between 1994 and 2015, aiming to present how different political and socio-economic factors influenced the development and business performance of restaurant establishments in the past. Publicly available financial data were used to analyse the performance of restaurant establishments, comparing it with the performance of the whole hospitality sector. The research results were analysed in connection with major political and economic changes in the past. The results indicate poor economic performance, and restaurant establishments mostly experience difficulties with payment of current liabilities; their share of equity is constantly decreasing, and consequently, they are faced with growing levels of indebtedness. Based on the financial analysis, we can conclude that the EU accession process, introduction of the Euro, and the EU presidency had a positive impact on the increase of the net sales income. However, the financial and economic crisis negatively influenced the financial performance of the restaurant establishments. The results may considerably contribute to understanding financial performance of the restaurant industry in the Republic of Slovenia in the last 21 years.
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