Lisbon, with its cobblestones and many hills, has long been celebrated for its culinary diversity. Wherever you go, you will find many international cuisines catering for every taste and diet. Amongst these, a vibrant vegan scene has blossomed, offering anything between veganized traditional Portuguese dishes, pizza or Asian fusion. Those days seem to be slowly fading away, though, with some businesses closing down.
Why, what happened, you ask? Well, we asked the same question and decided to dive into the problem. Asking the customers, the businesses and even experts in the field what they think is the reason behind many closing establishments.
Why are so many vegan business closing in Lisbon? The Ingredients of Struggle.
We talked to the people in Lisbon’s plant-based scene to see if they’ve noticed any changes lately, like vegan restaurants shutting down. If they did, we wanted to know their thoughts on what might have caused it.
Turns out the second question has no easy answer, especially since the situation is individual for everyone. Some businesses seem to be still recovering from the hellfire of COVID-19. Others are fighting economic problems and some simply don’t have the energy anymore.
One thing is for sure, though. Sixty-seven percent of the people we asked noticed that vegan businesses have been closing down lately. Among the most frequently mentioned reasons were inflation, immense rental costs, heavy competition, bad marketing and fewer customers. Another common answer was that some businesses seem to only be targeting the vegan audience, which is not big enough to keep all the restaurants afloat.
So, let’s unravel some of these issues!
The Wind of (economic) Change
A significant factor contributing to the closing of some restaurants is the current economic situation, affecting both the establishments and the customers. Recovering from the pandemic and facing other challenges such as inflation or skyrocketing rental prices means many people might have to cut back on unnecessary spending, such as dining out.
The answers of our respondents were divided; however, they still indicate a shift in consumer behaviour. Almost half of them have not changed their eating habits recently, and some even dine out more than before. However, nearly forty-five percent dine out less. The leading motives for most were, unsurprisingly, economic reasons.
“I lost my job. I actually worked in one of those restaurants who closed recently and now I’m financially struggling,” said one of our respondents as to why they can’t really afford to eat out anymore.
Some indicators, such as the food basket, show rapid growth of prices. The price of 63 essential food items rose 24 percent between March 2022 and March 2024, according to DECO PROteste! Moreover, 20 % of Portuguese people are at risk of poverty or social exclusion. No wonder so many people choose to cook at home.
Monica from O Gambuzino, a vegan restaurant in the heart of Intendente, told us that their restaurant experienced a small decline in customers it receives on a daily/monthly basis. They also noticed that people have less money to spend, which they think is due to the rising cost of living.
Rising prices don’t only affect customers, they bother businesses, too. More expensive ingredients mean more expensive final products, which could mean less customers who can afford the meals. They also need to keep up with rent, employee wages and many other expenses.
“The economic and housing panorama doesn’t allow businesses to maintain their high rents. Many spaces are closing because they will be transformed into other things,” thought one of our respondents.
“We faced some challenges lately. Mostly due to the inflation, the high cost of some products and the increase in the price of electricity. It has been very challenging to keep the quality of the food the same as before without raising the price for the final consumer,” says Mariana from Vegan Junkies.
We haven’t raised our prices in more than a year, but that has meant that we had to compromise on having lower margins hoping that things will balance out eventually,” she adds.
There is also the issue of institutional support towards small businesses, which could still be hugely improved. Especially after the pandemic experience, which really showed us where businesses have their strengths and weaknesses.
“I think that Portugal could support all restaurants quite a bit better. The COVID supports were minimal and many were not applicable to us for very unjust reasons. The taxes are very high for businesses in Portugal compared to other countries, especially since it’s hard to track where it all goes. Other countries have lower taxes and I think that this ‘leftover’ money then goes into paying their staff a better wage,” says Monica.
Navigating Around Bacalhaus and Francesinhas
Another challenge vegan establishments face is finding a way around the Portuguese diet. According to Statista.com, 88 percent of the Portuguese population are omnivores, meaning they eat both plant and animal-based foods.
Of course, that doesn’t mean these people won’t go out to eat in a vegan restaurant. But the chances are significantly slimmer than within the vegetarian and vegan party. To be more precise, out of the whole 10,3 million inhabitants of Portugal, only 0,6 percent are fully vegan, however, it is important to note that this data is from 2018 and might be less relevant today.
This could also be the reason many vegans decide to dine in restaurants that only offer vegan options. Almost 64 % of our survey’s respondents stated they do not eat in strictly vegan restaurants and when asked why, most of them said it was because of friends or family members who are not vegan.
So what could vegan restaurants do to attract more customers across the whole dietary spectrum? Of course, some restaurants do not wish to attract anyone but vegans, and that’s okay. But for those who would like to cater to the vegan-curious folks, perhaps the answer could be as simple as better marketing.
In today’s world, where everything revolves around social media, internet presence is essential. Only a few concepts can afford to rely simply on word of mouth, so mastering PR and marketing should be on every business’s to-do list. A good TikTok account that follows current trends can be an easy way to attract new customers, both local and tourists.
“Some restaurants seem to not have many skills in promoting their dishes and communication, image plays a big part in attracting new customers,” one of our respondents commented.
There still seems to be a fair amount of prejudice towards veganism in general, and tapping into the deliciousness of the food instead, to show that vegan food isn’t only about fake meat and vegetables, could do the trick. There are many different audiences who would definitely enjoy vegan food, like people with intolerances and allergies or sustainability advocates.
“Restaurants usually advertise to a vegan audience which is not that big. They should just advertise the good food for everyone, maybe even without the vegan label as it can “scare” some possible customers and vegans know when the restaurant is vegan,” they added.
Turning the Beet Around
Not all is lost, though. With the consumer confidence indicator rising to the highest numbers since February 2022, there could be a shift in people’s attitudes towards casual spending. Inflation is also slowly calming down and is expected to further decrease later this year and also in 2025.
Plus, while some businesses are closing, more and more vegan places have been recently opening up, according to Monica.
“Lisbon is now in the top 10 vegan cities, and it looked very different 5 years ago, meaning it is a very drastic change,” she says and adds, that new businesses mean also more competition and pressure on the existing ones.
Mariana thinks that vegan businesses in general should be more supportive of each other, as they really share the same goals. “I always feel like there’s some people who look at others as purely competition and they don’t want to help out or participate or think of ways to improve together and make Lisbon a more vegan-friendly and open city,” she thinks.
Veganism is also slowly spreading to otherwise non-vegan establishments (383 restaurants come up when you search for vegan friendly on Happy Cow!). While that is not the best news to all the vegan restaurants out there, it’s definitely positive for all the vegans. Some of the traditional cafes started even offering plant-based milk, which is a great miracle! You can also find an amazing variety of vegan food in the supermarkets, which was definitely not possible just a couple of years ago. Mariana also noticed that people started viewing veganism as more than “just” healthy food and are more open to vegan fast food.
“There are more places opening up with better vegan options than before and that likely means that people are still eating vegan but everywhere, with their non vegan family and friends,” Monica comments.
“I think the demand (for vegan food) has increased. A lot more people are willing to try vegan food or are open to eating vegan to accompany their friends. But I also think that the amount of options that are available now can be more harmful for fully vegan businesses than anything else,” agrees Mariana.
It’s also important to note that people in Portugal eat out quite a lot, especially compared to other European countries. According to Statista, 59 percent of Portuguese ate at a restaurant once a week, and 10 percent did so four to five times a week. In comparison, only 13 % of Germans eat out once a week. Most of them eat out only once a month!
Our little survey amongst the local vegans shows even higher numbers, with 30 % of the respondents dining out 2-3 times a week, 35 % once a week and the other 35 % going out to a restaurant less than that.
To sum it up, vegan restaurants in Lisbon are facing a mix of tough hurdles, from financial strains to fitting into a meat-loving culture. But there’s light at the end of the tunnel! With some savvy marketing, mixing up menus, and teaming up with traditional spots, these veggie joints can totally bounce back. As people get more eco-conscious and open-minded about what’s on their plate, there’s a real chance for Lisbon’s vegan scene to not only survive, but thrive. So here’s to a new vegan chapter! Oh, and maybe it’s time to give the government a friendly nudge too. More support could mean more thriving vegan spots for all of us to enjoy!
