PAngV! Regulations on price display in the catering industry: What must be included on the menu?

What is the Price Indication Regulation?

The Price Indication Regulation (PAngV) is a German regulation that governs how prices must be displayed to consumers. It applies to all businesses that sell goods or services to end consumers – and therefore also to restaurants, cafés, bars, snack bars and all other catering establishments.

The aim of the PAngV is price transparency: Guests should be able to see at a glance what they are paying for a dish or drink – without hidden surcharges, ambiguous wording or misleading representations.

The current version of the PAngV has been in force since May 2022 and represents a significant revision of the previous version. Anyone who is not yet familiar with the changes should review their menu as soon as possible.

What must be displayed in the hospitality industry?

Principle: Final prices including all taxes and charges

The most important principle of the PAngV is that final prices must always be stated on the menu. This is the price the guest actually pays – i.e. including statutory VAT and all other price components.

A price such as “Schnitzel €12 plus VAT” is not permitted in the catering industry when dealing with consumers. VAT must be included.

Food and drink

All food and drink on offer must be clearly marked with their full final price. This applies to the menu at the table, to notices, to order boards at the bar and to digital menus – in short: to every form of price communication with guests.

Portion sizes and quantities

For drinks, the quantity to which the price relates must be stated. The standard quantities are:

• For beer: 0.3 l or 0.5 l

• For wine and sparkling wine: 0.1 l, 0.2 l or 0.25 l

• For spirits: 2 cl, 4 cl or 5 cl

• For water and soft drinks: 0.2 l, 0.25 l, 0.33 l or 0.5 l

For food, an indication of weight or quantity is only mandatory if the price depends significantly on the portion size and this would not be apparent without such an indication – for example, with steaks, which are charged by weight.

Service charges and cover charges

If you charge a cover charge, a bread basket surcharge or a service charge, you must communicate this transparently – ideally directly on the menu or clearly displayed at the entrance. Surprise surcharges on the bill, about which the guest was not informed beforehand, are not permitted.

The menu as a price display: where must it be visible?

According to the PAngV and supplementary catering regulations, you must display your food and drinks menu in such a way that guests can view the prices before ordering. Specifically, this means:

• The menu must be available at the entrance or clearly visible in the dining area – not only after guests have taken their seats

• For outdoor dining (terraces, beer gardens), prices must also be visible there

• For takeaway services or street vending, a clearly legible price display must be provided

The same applies to digital menus: If guests can only access the menu via a QR code, access must be simple and reliable. A menu that is only available ‘on request’ or whose QR code does not work does not meet the requirements.

VAT rates in the catering industry: What are the current rules?

VAT in the catering industry has been a moving target in recent years. For guidance, here is the current situation:

• Food for consumption on the premises is subject to the standard rate of 19%

• Takeaway food is generally subject to the reduced rate of 7%, provided it consists of basic foodstuffs

• Drinks – both for consumption on the premises and takeaway – are generally subject to the standard rate of 19%, with exceptions for certain products such as milk

Important: Tax regulations are subject to change. Check the currently applicable rates regularly and update your pricing immediately if there are any changes. If in doubt, a tax advisor with experience in the catering industry can help.

Common mistakes in pricing in the catering industry

Mistake 1: Displaying prices without VAT

A classic mistake, particularly in businesses that originally operated in the B2B sector and now also serve end consumers. Gross prices must always be displayed to guests.

Mistake 2: No price list displayed at the entrance

Many restaurateurs only place the menu on the table – but forget to display a price list at the entrance. Guests have a right to know the prices before they enter the premises.

Mistake 3: Missing quantity details for drinks

‘Beer €4.50’ without specifying the quantity is not sufficient. Without a quantity, the guest does not know whether they are getting 0.3 l or 0.5 l.

Mistake 4: Out-of-date prices on the menu

If the prices actually charged differ from those listed – whether higher or lower – this constitutes a breach of the PAngV. Update prices immediately when you change them.

Mistake 5: Hidden surcharges on the bill

A service charge that is not mentioned anywhere on the menu and only appears on the bill is not permitted. Communicate all surcharges transparently and in advance.

Mistake 6: Illegible price information

The PAngV requires that price information be “easily legible”. Tiny print, poor contrast or worn menus on which prices are barely legible may be considered a breach.

What are the consequences of breaching the PAngV?

Breaches of the Price Indication Regulation may be punished as an administrative offence. The relevant authorities – usually the local authority’s public order department or the consumer protection agency – may impose fines following inspections.

Furthermore, competitors or consumer protection organisations may issue warnings if prices are displayed in a misleading or incomplete manner. The costs of such warnings can quickly run into the thousands – a risk that can easily be avoided by ensuring prices are displayed correctly.

Special case: daily specials and changing offers

Daily specials or weekly offers that do not appear on the main menu must also be displayed correctly – on a blackboard, a stand or a digital display. The same rules apply here too: final prices, quantity details for drinks and clearly legible presentation.

Those with frequently changing offers benefit particularly from a digital solution: prices and dishes can be updated in seconds, without having to write on new boards or order printed materials.

Price Indication Regulation and digital menus

Digital menus offer several advantages for compliance with the PAngV: price changes can be implemented immediately and simultaneously everywhere, quantity details and mandatory information can be stored in a structured format, and there are no outdated printed versions in circulation.

At the same time, digitalisation brings with it new obligations: the menu must be technically reliable and accessible at all times. A menu that cannot be accessed due to a server failure or a faulty QR code does not fulfil the obligation to display prices. Anyone relying exclusively on digital menus should therefore either have a printed backup solution ready or opt for a technically robust platform.

Conclusion: Price transparency protects and wins over customers

The Price Indication Regulation is not a bureaucratic hurdle, but a useful tool for protecting consumers – and ultimately restaurateurs too. Those who display prices transparently and correctly avoid warnings, build trust and ensure that guests leave the restaurant without any nasty surprises.

Check your menu regularly to ensure it is up to date and complete. And if you change prices – whether due to increased purchasing costs, seasonality or a strategic reorientation – do so consistently across all channels at the same time.