The Restaurant Industry in Lillesand: Current Status and Future Perspectives

The restaurant industry in Lillesand is an important part of the municipality's economy, with 19 registered companies in 2025. The industry has shown both strength and instability over time, with a sales peak of NOK 73.1 million in 2023 and a sharp decline to NOK 28.6 million in 2025. The workforce has varied between 83 and 242 employees from 2020 to 2023, followed by a dramatic decline in 2025. The most represented organizational forms are AS (7 companies) and ENK (1 company).

Economic Trends

• Sales: The industry had an annual increase of +35.7% from 2017 to 2018, but a sharp decline of -46.8% from 2024 to 2025.
• Workforce: The workforce increased by +59.3% from 2020 to 2021, but declined by -54.4% from 2024 to 2025.
• EBITDA Margins: Ranged from -220% (Heimdal As) to +14% (Hos Oss Lillesand As).

Key Players in the Industry

• Restaurant Sjøbua As (Strandgata 8): 61 employees, NOK 13.9 million in sales, but with an EBITDA of -691,000 kr.
• Hos Oss Lillesand As (Havnegata 3): 36 employees, NOK 17.4 million in sales, and an EBITDA margin of +14%.
• Geheb Conditori Lillesand As (Vestregate 6): 11 employees, NOK 4.1 million in sales, but with an EBITDA of -50,000 kr.
• Lillesand Pizza As (Havnegata 1): 11 employees, NOK 7.4 million in sales, and an EBITDA margin of +8%.
• Brekkestø actors: Håbestad Have As and Brekkekjærhaven As have lower sales and negative EBITDA values.

Geographic Distribution

• Lillesand: 7 companies, 132 employees, NOK 42.8 million in sales, and NOK 2.5 million in EBITDA.
• Brekkestø: 1 company, 9 employees, but no sales or EBITDA reported. Activity in Brekkestø is very limited compared to Lillesand.

Dynamics and Risk

• Bankruptcies: No bankruptcies reported in the Lillesand industry from 2025 data.
• Unstable EBITDA Margins: Several companies have negative EBITDA values, such as Geheb Conditori (-1%) and Heimdal As (-220%).
• Larger Companies: Hos Oss Lillesand As and Restaurant Sjøbua As dominate sales and employee statistics, but with variable profitability.

Outlook for Entrepreneurs

• Stability in Lillesand: Lillesand has a more stable business environment compared to Brekkestø, with more companies and higher sales.
• Challenging Margins: EBITDA margins often fall below 10%, requiring effective cost management.
• Importance of Location: Companies in Lillesand have higher sales and employee numbers, while Brekkestø has very limited activity.
• SmartGrunder can help: We can help entrepreneurs find optimal locations in Lillesand for restaurant operations, based on data about sales, employees, and competitiveness.

Comparison with Broader Category

• Restaurant / Café: The broader category has 23 companies in 2025, compared to 19 in the restaurant-leaf category.
• Sales: The broader category had NOK 111.6 million in 2025, while the restaurant-leaf category had NOK 28.6 million.
• Peer Companies: Examples include Ikea As Cafe Sørlandet (NOK 79.7 million in sales, 37 employees) and Fjordkroa Stranda As (0 sales, 25 employees).

The restaurant industry in Lillesand has both opportunities and challenges. With a stable location and more companies in Lillesand compared to Brekkestø, it can be a good market. However, the demanding EBITDA margins and variable sales volume require effective cost management. Entrepreneurs should consider locating in Lillesand and look at peer companies in the broader category to find inspiration and strategy.