The Restaurant Industry in Porsgrunn: Current Status and Future Prospects

Porsgrunn has an active restaurant industry with 64 registered companies in the municipality. In 2025, the sector employs 413 people, indicating a stable level of workforce. Sales have grown by 5.9% from 2024 to 2025, and the EBITDA margin is at 9-10%, suggesting good operational efficiency among many businesses. The sector includes both traditional restaurants and modern cafes, with a mix of older and newer companies. The broader category restaurant / cafe in the municipality has 79 companies, showing that the restaurant industry is part of a larger sector with various operational forms and focus areas.

Economic Trends

Sales and Employees:

Sales experienced a significant decline in 2022 (30.5%) before a gradual increase in 2024 and 2025. The workforce has varied significantly, with a decrease of 11.9% from 2020 to 2021, but an increase of 17.8% from 2021 to 2022. The EBITDA margin has remained stable at 8-10%, indicating that many businesses have good cost control.

Operational Results:

• Average EBITDA margin: 9%
• Average gross profit margin: 67%
• Average operating margin: 5%

There are 64 registered businesses in the restaurant industry in Porsgrunn, but only 16 of these are detailed in the data. The most notable businesses include:

• Cafe Osebro As (Storgata 176): 29 employees, 24.7M in sales, 3.1M in EBITDA (11% margin)
• Egon Restaurant Porsgrunn (Kulltangvegen 70): 25 employees, 27.3M in sales, 2.9M in EBITDA (10% margin)
• Øya Spiseri As (Storgata 176): 20 employees, 17.6M in sales, 2.6M in EBITDA (13% margin)

Most businesses are organized as AS (28 companies), while one business is organized as DA. The most active businesses have higher sales and EBITDA than the average, while some businesses have negative EBITDA (e.g., Suntao As and Jimmys Porsgrunn).

Restaurant operations are most concentrated in Porsgrunn and Brevik. Comparison of the two areas:

Porsgrunn has a much larger business base and higher sales than Brevik. Brevik, however, has a lower operating margin (minus 13%) compared to Porsgrunn (5%). This suggests that businesses in Brevik face greater challenges with costs and revenue.

There are no registered bankruptcies in the restaurant industry in Porsgrunn in the data. However, some businesses show negative EBITDA, which may indicate economic challenges. Examples:

• Suntao As (Brevik): -16% EBITDA margin
• Jimmys Porsgrunn: 1% EBITDA margin
• Oda Sofies Isbar As (Brevik): -7% EBITDA margin

This shows that even though there are no bankruptcies, there are several businesses operating with low margins or losses. This could be an important consideration for new entrants looking to establish themselves in the municipality.

Development Opportunities for Entrepreneurs

For entrepreneurs considering establishing themselves in the restaurant industry in Porsgrunn, the data show both opportunities and challenges. Sales have grown by 5.9% from 2024 to 2025, indicating a gradual increase in the market. The EBITDA margin is at a stable level (9-10%), which could be beneficial for new businesses seeking to achieve efficient operations.

However, it is important to be aware that some businesses operate with low margins or losses. This may indicate high competitiveness and a need for differentiation. Entrepreneurs should consider focusing on unique customer offerings, such as specialized food categories or innovative service, to stand out in the market.

Development Opportunities in Broader Category

The broader category restaurant / cafe in Porsgrunn has 79 companies, showing that the restaurant industry is part of a larger sector with various operational forms and focus areas. Comparison of the two categories:

• Number of companies: 64 (restaurant) vs. 79 (restaurant / cafe)
• Sales: 104.1M (restaurant) vs. 119.2M (restaurant / cafe)
• EBITDA margin: 9-10% (restaurant) vs. 8-9% (restaurant / cafe)

The broader category has higher sales, but a lower EBITDA margin. This may indicate that cafes and other businesses in the category have lower efficiency. Entrepreneurs should consider whether they want to establish themselves in a more specialized sector (restaurant) or a broader category (restaurant / cafe) based on their operational strategy and target audience.

The restaurant industry in Porsgrunn has a stable level of sales and employees, with a good EBITDA margin. There are opportunities for growth, especially with the increase in sales from 2024 to 2025. However, it is important to be aware that some businesses operate with low margins or losses, which may indicate high competitiveness. Entrepreneurs should consider focusing on unique customer offerings and efficient operations to stand out in the market. SmartGrunder can help entrepreneurs find suitable locations and strategies to establish themselves in the municipality.