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The Restaurant Industry in Birkenes: Current Status and Future Prospects

Published 22.09.2026

Analysis of Companies, Economic Trends, and Development in the Restaurant Industry in Birkenes Municipality

Brief Overview of the Restaurant Industry in Birkenes

The restaurant industry in Birkenes is a small but dynamic sector with 7 registered companies. In recent years, the industry has been marked by both rising and falling trends, with a mix of solid businesses and challenges such as bankruptcy and declines in employee numbers. An important observation is that Birkeland is the main hub for restaurant activity in the municipality, with two active companies and 18 employees. At the same time, data shows that the industry has high variation in financial results, with both high and negative margins. This indicates that there are both opportunities and risks for new players in the municipality.

Economic and Financial Trends

Economic Trends

Sales in the restaurant industry in Birkenes have been unstable in recent years. From 2016 to 2025, sales ranged between NOK 4.0 million and NOK 9.9 million, with a significant decline of 51.5% from 2017 to 2018. There has been a gradual increase from 2019 to 2024, followed by a new decline of 47.5% in 2025. The number of employees has also been unstable, decreasing from 37 in 2016 to 17 in 2026, although there was an increase from 2023 to 2025.

Financial Indicators

The two most active companies in Birkeland have high financial results, with an EBITDA margin of 9% and a gross margin of 70%. This is significantly higher than the industry average, indicating efficient operations. However, one of the registered companies (Happy Time Birkeland As) has gone bankrupt, showing that there are also challenges in the industry.

Sales over time — restaurant — Birkenes
Sales over time — restaurant
Number of companies — restaurant — Birkenes
Number of companies — restaurant
Employees over time — restaurant — Birkenes
Employees over time — restaurant

Companies in the Restaurant Industry

Registered Companies

The following companies are registered in the restaurant industry in Birkenes:

CompanyLocationNumber of EmployeesLegal FormStatus
Birkeland Pizza AsStrøget 13, Birkeland14ASActive
Birkeland Bakery & Lunch BarBirkeland4ASInactive
As HegrafossGamleveien 32, Herefoss0ASInactive
As HegrafossGamleveien 32, Herefoss0ASInactive
Happy Time Birkeland AsStrøget 78, Birkeland0ASBankrupt
Happy Time Birkeland As Bankruptcy EstateStrøget 78, Birkeland0KBOActive
Wenches KaféEngeslandsveien 1004, Engesland0FLIInactive

Legal Forms

Most companies are registered as AS (2 companies), while there is also one FLI and one KBO. The two most active companies are both AS entities, indicating that this legal form is common in the industry.

Geographic Distribution of Business Activities

Distribution of Business Activities

Most companies in the restaurant industry in Birkenes are located in Birkeland, with two companies and 18 employees. The other companies are distributed between Herefoss and Engesland, but these have no activity (0 employees and 0 sales). This indicates that Birkeland is the main hub for restaurant activity in the municipality, with significantly higher activity than other areas.

Companies by place — restaurant — Birkenes
Companies by place — restaurant

Dynamics and Stability in the Industry

Dynamics and Challenges

The industry has been marked by some bankruptcies, such as the case of Happy Time Birkeland As. This company had a sales volume of NOK 1.2 million but still went bankrupt, indicating that there may be challenges in maintaining profitability in the industry. At the same time, there have been large variations in sales and number of employees, which may be due to both external factors (such as the pandemic) and internal challenges for individual companies.

Stability and Growth

Although there have been declines in the number of employees and sales in certain periods, there has been a gradual increase in sales from 2019 to 2024. This indicates that the industry has some degree of resilience, even though there are large variations between individual companies.

Bankruptcies by place — restaurant — Birkenes
Bankruptcies by place — restaurant

Outlook for New Players in the Industry

Future Perspectives

For entrepreneurs considering starting a restaurant in Birkenes, the data suggests there are both opportunities and challenges. Birkeland appears to be the most promising area, with existing businesses and higher financial results. However, it is important to be aware of the large variations in the industry, as well as the risk of bankruptcy shown in the data. It may be profitable to focus on efficient operations and high margins, as demonstrated by the two most active companies.

Resources for Entrepreneurs

SmartGrunder can help entrepreneurs find suitable locations in Birkenes for restaurant operations, focusing on areas with high potential for success. It is also worth exploring opportunities for collaboration with existing businesses in Birkeland to leverage local conditions.

Conclusion

The restaurant industry in Birkenes is a small but dynamic sector with both opportunities and challenges. Birkeland is the main hub for business activity, with two active companies and high financial results. However, there is also a bankruptcy registered, indicating that there may be risks for new players. For entrepreneurs, it is important to consider location, efficient operations, and financial stability. SmartGrunder can help find suitable locations and develop strategies for success in the industry.