Vegan fast food company in Germany declares bankruptcy, causing closure of branches
Swing Kitchen, a popular vegan fast-food chain, has filed for insolvency and closed its German outlets, primarily due to financial difficulties caused by rising energy and personnel costs, intense competitive pressure in the vegan fast-food segment, and a general reluctance to consume vegan food in that market.
The company, owned by Schillinger Vegan Holding GmbH, accumulated liabilities of around €4.3 million, leading to its insolvency declaration. Despite initial ambitions to expand successfully in Germany with vegan hamburgers, the German market proved too challenging for Swing Kitchen, resulting in the closure of all German restaurants in Berlin, Munich, and Leipzig.
In an attempt to address these issues, Swing Kitchen initiated a restructuring plan. This plan includes refocusing on its core markets in Austria and Switzerland, introducing a new menu in May 2025, optimizing internal processes, and implementing staff reductions at affected sites. The company is confident that these changes will secure its future and preserve jobs in those countries.
Founded in Vienna in 2015, Swing Kitchen aimed to revolutionize the food industry with plant-based burgers, nuggets, and wraps. However, the sharp increase in commodity prices, particularly in Germany, has reportedly led to financial strain for the company. Initially, Swing Kitchen had planned to open ten new locations in Germany by the end of 2025, but none of these were realized. Instead, several outlets in Berlin, Leipzig, and Munich have been closed without prior notice.
The CEO of Swing Kitchen, Albrecht Eltz, has cited the growing financial strain as the main reason for the company's failure. Despite the setbacks, Eltz remains optimistic about the future, stating that the restructuring efforts will help Swing Kitchen to stabilize and continue operations in Austria and Switzerland.
In summary, Swing Kitchen's insolvency and German closures resulted from cost pressures (energy and staff), competitive market conditions, and insufficient customer demand, despite restructuring efforts and a strategic refocus on stronger markets. The company's ambitious plans for expansion in Germany were not met, and the parent company, Schillinger Vegan Holding, has accumulated debts of over four million euros.
The insolvency of Swing Kitchen, a popular vegan fast-food chain, has resulted in a significant financial burden for Schillinger Vegan Holding GmbH, with debts totaling approximately €4.3 million. Despite the company's initial ambition to revolutionize the food industry by expanding in Germany, the challenging German market and financial difficulties led to the closure of all German outlets, affecting their lifestyle and business operations.
