The Restaurant Industry in Kåfjord: Current Situation and Future Outlook

The restaurant industry in Kåfjord is a small but dynamic sector with three registered companies. One of these, Siam Catering AS, is active and operates in Olderdalen, while the other two companies (Birtavarre Husflidslag) have no revenue or employees. The industry shows a mix of stability and uncertainty, with an increase in sales and number of employees in 2022–2023, but also periods of decline. Future prospects for new players depend on navigating a weakly competitive market structure and local challenges.

The industry has experienced variations in sales and number of employees over time:

Sales declined by 17.1% from 2020 to 2021, but recovered in 2022 with +36.9%. The number of employees has been declining, but showed an increase of +66.7% from 2024 to 2025. The only active company, Siam Catering AS, reports an EBITDA margin of 13% and an operating margin of 7%.

Three companies are registered in Kåfjord:

1. Siam Catering AS (Olderdalen) – AS legal form, 4 employees, sales of 1.7M NOK, EBITDA of 239,000 NOK.
2. Birtavarre Husflidslag (Birtavarre) – FLI legal form, 0 employees, no revenue.
3. Birtavarre Husflidslag (Birtavarre) – FLI legal form, 0 employees, no revenue.

The legal forms show that there is one AS and two FLI companies. Siam Catering AS is the only company with activity, while the other two companies have no operational results.

Activity is concentrated in Olderdalen, where there is one company (Siam Catering AS) with 4 employees and sales of 1.7M NOK. In Birtavarre, there are two companies, but both have 0 employees and no revenue. This indicates that Olderdalen is the only area with active operations in the industry. A potential expansion to Birtavarre could be challenging without sufficient local demand.

The industry has been relatively stable with no bankrupt companies reported. Nevertheless, two of the three companies show that they have not operated for several years. This may indicate challenges in maintaining operations in a small municipality with limited demand. Siam Catering AS, however, has shown good economic performance with an EBITDA margin of 13% and an operating margin of 7%.

Outlook for New Entrants

For new entrepreneurs in Kåfjord, it is important to consider the small-scale dynamics of the industry. The only active company has shown good economic performance, but there is only one competitor. This may provide opportunities for a new entrant with a differentiated offering, but it is also important to be aware of local challenges, such as limited demand and a weakly competitive market structure.

Outlook for the Overarching Industry (Restaurant/Café)

The overarching industry restaurant/café in Kåfjord has four companies, three of which belong to the restaurant sector and one (Cafe Gorsa Birtavarre Skele Zile) is a café with 0 employees and 0 sales. This shows that the café sector has not shown activity. Compared to the restaurant sector, the overarching industry has a similar development in sales and number of employees, but with an additional company structure that is not active. This may indicate opportunities to expand into the café sector, but it is important to assess local demand patterns.

The restaurant industry in Kåfjord is small, but shows potential for stability with the one active company. For new entrepreneurs, it is important to consider both the opportunities and challenges in a small municipality. SmartGrunder can help find suitable addresses and assess local conditions for a new restaurant or café in Kåfjord.