As On the 1st of July 2009 the French government declared to lower VAT on restaurant food from 19.6% to 5.5%. The government announced this move to boost the restaurant industry as it is one of the country’s biggest industry. But the industry has been suffering so badly during the economic downturn. Optimistically, the price cuts attract people to eat out more to improve the state of the economy.

The contract directs the restaurant owner to reduce their prices by 11,8% on seven different items out of a list of ten In return for the reduction in tax. Not only that the venture includes the dish of the day, set menu with entrée and main course, set menu with main course and dessert, children’s menu, desserts, mineral water, fizzy drinks, soft drinks, tea and coffee etc though alcoholic beverages are excused from the tax diminution. It is surprising that the Coffee priced at 1,60€ will now cost 1.40€ and for a fixed menu at 20€ anybody can save 2.40€. The restaurants accepting to receive part in this VAT reduction venture have to let their customers know by positioning a small poster stating clearly which items of food and drink are reduced.

Restaurant owners will be persuaded to make improvements like making their restaurant more accessible and attractive for people with diminished mobility, improving comfort for customers, computerisation and recycling. The industry can get a benefit from subsidised loans of 15,000€ which will be awarded through a specially generated modernisation fund. The aim if this venture is to make available the catering industry with one billion Euros over three years. Without wasting anytime just go for a dining as it is the best time.