“We are very supportive of the farmers as we are experiencing almost the same thing”

The hotel and catering unions, Umih and GHR, united to demand help from Bruno Le Maire to renegotiate the electricity contract. Thierry Marx, celebrity chef, and Yumih, president of the Union of Trades and Hospitality Industries, are francinfo’s eco guests.

Thierry Marx is a starred chef, President of the UMIH, Union of Hotel Trades and Industries, the first professional body of cafes, hotels, restaurants and nightclubs. He has just written to the Minister of the Economy, along with the president of the Groupe des Hotelries and Restaurants de France.

franceinfo: You are calling on Bruno Le Maire to renegotiate the electricity contract. Are you talking about prices above the ground?

Theory Marks: Yes, these are above ground prices that we cannot absorb for many companies. And 88% of companies tell us that electricity bills have impacted their cash flow and today, many are struggling to meet their obligations. The cost of production imposed on us by this expenditure of energy is not manageable.

Explain to us concretely, how much do restaurant owners, cafe owners, hoteliers have invoices and contracts that add up to?

The bills were regulated, of course, but they have doubled or tripled and we have experienced a lot. So it’s huge in the impact it can have on a business. And when these companies want to renegotiate the contract, the exit penalty is exorbitant. So we are calling Bruno Le Maire on energy costs to save some companies, and then to allow us to negotiate better with these energy suppliers who are out of control at times.

According to a survey conducted by two professional associations, 10 to 15% of professionals are also bound by contracts with prices above €350 per MWh.

Exactly and we had a price that was a bit more controlled with the help of the state and Bruno Le Maire and his services. But today, this is no longer acceptable and we cannot allow companies to have such high production costs. Especially since production costs cannot be passed on to selling prices. So, today, many companies are struggling and on the verge of defaulting on payments. Let’s not forget that we are also repaying state-guaranteed loans linked to the Covid crisis.

Have you tried talking to the electricity suppliers?

If we do not have state approval, it is very difficult to negotiate with suppliers. You won’t negotiate so easily with Total Energy, Eng or EDF. Perhaps simplicity was more on EDF’s side, let’s face it, they got us right away. But for other energy suppliers, it’s more complicated. And when we actually get Bercy’s approval, the doors open a little faster.

In the meantime, what are you doing? Do you reflect your costs in your prices?

No, we can’t pass them up. Today, this boosted the company’s cash flow for those who still had cash flow. But some are really struggling. Let’s not forget that in 2023, more than 7,000 businesses will be closed.

How is your job going? How is your field doing?

It is in the midst of a region of turmoil for various and varied changes. The President of the Republic spoke of a world that is changing, we are in the midst of change in this world. We are witnessing a very strong uberization of our society that is seen today and which has a significant impact on our businesses. So many companies today have economic models that no longer respond to this force that shakes them and we are in deep trouble. So it is a field of turbulence that is very strong. We are very supportive of the farmers because we are experiencing almost the same things, one after the other excessive standards and at the same time cost of production which we cannot pass.

Are you going to an agricultural show?

Of course, we have always felt very much at one with the agricultural world. Food is a sensitive area of ​​our business.

As chefs and restaurateurs, what can we do to help the agricultural world?

First, we should try to see what we can do to make good products, so that these products have a social, environmental and nutritional impact. A social impact so that we remunerate the farmer at his fair value. And then stop making the price of food a variable to adjust for purchasing power. The problem is that it is very old. This is the low cost theory, where you give up quality by knowing low prices. So it strangled everyone’s margins, especially the farmers. And today we are not coming out of it. We told ourselves that after Covid, we will create a better world and finally, we returned to the price war. Hence the crushing margin, especially of farmers. Today this is no longer acceptable and we must find solutions to allow people purchasing power without putting too much pressure on the cost of raw materials.

Do you favor French products?

French products, short circuits, of course, but you still have to be able to implement them and then defend the idea of ​​a good product. I am lucky enough to be in the association, at a label called Bleu-Blanc-Cœur, and I brought Bleu-Blanc-Cœur to the world of catering. Bleu-Blanc-Cœur today has 7,000 farmers who have changed their production methods and who are finally doing very well. He stands in solidarity with his fellow farmers, but we don’t hear much from him about these demonstrations because his model is virtue.

How do you plan for 2024? What will be the main challenges for these businesses you represent?

First of all, to see strong signs of the Olympic Games, will it be a celebration in the village or is it just what we experience every time the Olympic Games come? In London, Rio or Tokyo, an occupancy rate of around 70 to 75% is almost guaranteed for hotels. It is very good because it is a period, July and August, which is not a busy period in big cities. But at the same time, we have a workforce shortage, with 200,000 vacancies to fill in our businesses. So we have to adapt and try to get through these tough times. So when I say the turbulence zone of 2024, it is a state of turbulence which is always a danger zone.

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