Restaurant bankruptcies hit record high, Oulu operator blames policy failures

Finland’s restaurant and hospitality sector saw a record number of bankruptcies last year, with 2026 offering little relief, according to a report by public broadcaster Yle.

Ilpo Sulkala, a long-time Oulu-based restaurateur and founder of the legendary 45 Special club, said the industry is in its worst crisis in decades. He cited a string of blows—Covid-19 closures, soaring costs, recession, and now a parliamentary decision allowing home delivery of alcohol, which he argues diverts revenue abroad.

“Our decision-makers are so stupid. They don’t understand business at all,” Sulkala said, criticising the move to permit foreign firms to deliver alcohol to Finnish doorsteps. The Finnish Hospitality Association MaRa estimates the policy could cost the state nearly €1 billion in lost tax revenue annually.

Sulkala, who also co-runs the newly opened Tarkastamo venue, argued that lowering alcohol taxes for licensed premises would improve profitability and draw customers back. MaRa’s CEO Timo Lappi agreed, noting Finland’s alcohol taxation is the highest in the EU and should be aligned with European averages.

Beyond policy, Sulkala said the sector is still reeling from Covid-era debt and inadequate compensation. He had two messages for customers: support local venues, and recognise that the industry’s struggles are not over.