Thursday, 28 August 2025
The seasonal boom linked to spring communions and upcoming weddings has brought a short-term boost for many businesses in Poland’s catering and service sectors. However, the overall financial health of the industry remains fragile. According to data from the BIG InfoMonitor Debtors Register and the BIK database, while some improvement has been observed in how companies settle their debts, total outstanding liabilities in the food service industry still exceeded PLN 1 billion at the end of March 2025.
Increased demand for events such as communions has created a spike in orders for restaurants, catering services, photographers, and florists. Yet, these higher revenues are often offset by rising operational costs, such as energy, raw materials, and wages. As a result, the profits generated during this season offer only temporary relief rather than a path to lasting recovery.
Organizing a first communion celebration remains a significant expense for families. Costs can range from a few thousand to tens of thousands of zlotys, depending on the scale of the event. However, more households are opting for modest gatherings at home, reducing guest lists and preparing some of the food themselves. This shift is driven largely by rising prices. Over the past two to three years, the cost of services such as catering, photography, and floral arrangements has increased by 15–20 percent.
Despite this seasonal activity, the number of restaurants and catering businesses with overdue financial obligations continues to rise. As of March 2025, the total value of unpaid liabilities in the food-related services sector (PKD 56) stood at PLN 1.03 billion. This figure is only marginally higher than a year earlier but marks a 41 percent increase since 2021. Within the sector, restaurants (PKD 561) accounted for PLN 873 million in arrears—up 42 percent over five years—while catering companies (PKD 562) owed PLN 101.5 million, a 41 percent rise over the same period.
Though there has been a slight year-on-year improvement—some restaurant debt decreased and the catering segment saw a drop of over PLN 3 million in overdue liabilities—the overall trend suggests that many businesses are still struggling. Movable catering establishments recorded the highest increase in debt, while fixed restaurants showed modest recovery. The average debt per unreliable debtor has slightly decreased, suggesting a small reduction in financial risk across the industry.
The challenges are compounded by the fact that the number of active catering businesses has grown by nearly 25 percent in five years, while the number of indebted companies has grown at almost the same pace. According to Dr. Waldemar Rogowski, Chief Analyst at BIG InfoMonitor, the sector’s expansion is not necessarily matched by stable profitability. Inflation and rising input costs have eroded margins, even as revenue increases.
Photographers, who also benefit from the communion season, are faring somewhat better. The popularity of professional photo shoots has increased, with costs for such services ranging from PLN 300 to several thousand. The photography industry (PKD 742) recorded a total of PLN 28.6 million in overdue liabilities at the end of March 2025—2.3 percent lower than the previous year. Over five years, however, debt in the sector rose by over 28 percent. The number of active photo companies has grown by more than 20 percent, but the number of indebted entities increased by just 6.7 percent, indicating relatively healthy financial management among newer businesses.
Florists also see increased demand during communion season. Professional floral arrangements for churches and reception venues have become common, with costs ranging from a few hundred to several thousand zlotys. At the end of March 2025, florists and related businesses (PKD 4776Z) had accumulated PLN 67.2 million in unpaid liabilities, up 8.7 percent from the previous year. The average debt per defaulting company stood at around PLN 61,000.
Late payments remain a persistent problem for the broader SME sector. According to a BIG InfoMonitor survey, nearly three-quarters of small and medium-sized enterprises in Poland report experiencing delays in receiving payments from their contractors. Paweł Szarkowski, President of BIG InfoMonitor, advises business owners to check potential partners in debtor registers to avoid being drawn into financial difficulties caused by others’ instability.
Consumers are also encouraged to take precautions. Before booking a venue or hiring a service provider for family events such as communions, it’s advisable to verify the financial standing of the company. This step can help prevent situations where a business closes unexpectedly, leaving customers without services and losing deposits.
Although the communion season brings a wave of orders, it does not signal a full recovery for the catering and service industries. Many companies remain heavily indebted and vulnerable to market fluctuations. The current boom is a much-needed opportunity to stabilize, but true recovery will require structural improvements and greater financial resilience.
Source: BIG InfoMonitor and BIK
Photo: Paweł Szarkowski, President of BIG InfoMonitor
