The Restaurant Industry in Arendal: Current Status and Future Perspectives

The restaurant industry in Arendal is an important part of the municipality's economy, with 58 registered companies and combined sales volume of over 198 million NOK in 2024. The industry has shown both strength and instability over time, with a sharp decline in sales of 42.9% in 2025. One of the most notable developments is the bankruptcy of Cafè En Arendal As in Bjorbekk, which highlights the challenges that can arise in this sector. At the same time, Arendal has shown a gradual increase in the number of employees, with 644 employees in 2026, although there have been periods of decline.

Over time, the restaurant industry in Arendal has shown a complex economic development. The sales volume increased sharply from 2016 to 2019, before falling by 19.2% in 2020 due to the pandemic. Afterwards, the industry experienced a gradual increase, reaching a peak of 198.5 million NOK in 2024, before a dramatic decline of 42.9% in 2025. The number of employees has been more stable, increasing from 490 in 2020 to 644 in 2026, although there have been periods of decline of up to 15.7%.

In Arendal, the restaurant industry is represented by 58 companies, most of which are AS companies. The most well-known companies include Castelle, Poiesz Restaurant As, and Madam Reiersen As, all of which have higher sales and employees than the average. One of the most interesting observations is that 31 of the 58 companies are AS companies, with 635 employees and combined sales of 206.4 million NOK. There is also a single proprietorship company, but it has no employees or sales. One of the most notable cases is the bankruptcy of Cafè En Arendal As in Bjorbekk, which had 17 employees and a negative EBITDA of -82,000 NOK.

Geographically, the restaurant industry is most concentrated in Arendal, where there are 29 companies and 620 employees. Bjorbekk has 1 company and 17 employees, while Færvik and Saltrød each have one company, but no employees. Saltrød had a positive EBITDA of 454,000 NOK, despite a 26% sales decline in 2025. Arendal has a higher average EBITDA margin (5%) compared to Bjorbekk (-2%), which shows that companies in Arendal generally have better financial results.

The industry has been affected by the bankruptcy of Cafè En Arendal As in Bjorbekk, which had 17 employees and a negative EBITDA of -82,000 NOK. This shows that there can be challenges for small companies in this sector, especially if they do not have sufficient financial stability. However, most companies in Arendal have positive EBITDA and operating profit, which indicates that most companies in the industry have good financial health.

For entrepreneurs considering starting a restaurant in Arendal, it is important to be aware of the recent years of sales decline (42.9% in 2025) and the challenges that can arise from a bankruptcy. However, Arendal has shown a gradual increase in the number of employees and a stable EBITDA margin of 5%. This suggests that there may be opportunities for new companies, especially if they can adapt to market changes and secure a good financial position. Arendal also has a higher average sales per employee (22,300 NOK) compared to Bjorbekk (234,300 NOK), which can be an advantage for new companies.

In the broader category of restaurant/café in Arendal, there are 81 companies, which shows that the industry is more developed than the individual restaurant sector. The sales volume in this category reached a peak of 280.9 million NOK in 2023, before falling by 38.1% in 2025. The EBITDA margin in this category was 10% in 2023, which is higher than in the restaurant sector (5%). This shows that cafés and other types of restaurants may have better financial results. One of the most interesting companies in this category is Obs Arendal Avd Kafeteria, which had an EBITDA of 1.6 million NOK and 10 employees. There are also several companies with negative EBITDA, such as Cafè En As, which had 0 sales and 0 employees.

The restaurant industry in Arendal has both strengths and challenges. With 58 companies and combined sales of over 198 million NOK in 2024, the industry is an important part of the municipality's economy. However, it has shown a sharp decline in sales of 42.9% in 2025, which can be a challenge for new companies. At the same time, Arendal has shown a gradual increase in the number of employees, with 644 employees in 2026, which suggests that there may be opportunities for new companies. SmartGrunder can help entrepreneurs find good addresses in Arendal for the restaurant industry, and provide advice on how to secure a good financial position in this sector.