Portugal is one of the European countries where res-
taurants contribute the most to employment and the
economy. By deciding to raise the VAT rate applied to
the sector from 13% to 23% amid a situation of falling
internal demand, the authorities knew that operators
could not raise their sale prices to keep their margins
and that demand would continue to drop. It was there-
fore inevitable that many restaurants would close or cut
back activity, causing a significant rise in unemployment
in the sector and incrementing the parallel economy.
The rate currently practiced by the sector is only ac-
companied by its counterparts in Greece and Roma-
nia. In France and Sweden movement has been in the
reverse direction, with substantial reduction of the
rate applied to the sector’s operations, the goal being
to create new jobs.
Unfortunately, our governing authorities are downplay-
ing the harmful consequences of the changes they de-
cided to implement, without trying to understand them,
measure them and change the law.
The sharp drop in demand, which we estimate at 15%,
meant that at the end of the financial year we employed
3,727 workers in Portugal, similar to the figure in finan-
cial year 2004. In other words, an eight-year regression
in the process of creating jobs which has always guided
us, as a result of fewer units and the need to establish
new operational balances. We also recorded a signifi-
cant drop in voluntary exits of workers and the need to
eliminate or reduce the variable component of remu-
nerations, which led to a decrease in salaries.
In this context of heightened political insensitivity to
the sector’s importance for Portugal, we find ourselves
compelled to everyday reinvent our modus operandi to
ensure that the Group remains cohesive and with a vi-
sion for the future.
With a view to satisfying demand, we have made a huge
effort to meet the needs of the Portuguese, accompany-
ing their efforts during this period of austerity. We can
even assert that this was our primary and principal mis-
sion in 2012.
In the Ibersol Group everything that’s done has a pur-
pose, a reason and an objective, as do the sacrifices im-
posed on the Portuguese by the economic and financial
policy, which cannot exhaust the capacity to attract fi-
nancial resources via the return to the markets.
We believe in Portugal, we believe in the Portuguese
and in their creative force which is evident throughout
the world. It is up to the state and to the national and
Message from the Chairman
of the Board of Directors
MANAGEMENT REPORT
12
