The Restaurant Industry in Suldal: Current Situation and Future Opportunities

The restaurant industry in Suldal is a small but dynamic sector with three registered businesses. The three companies have a mix of organizational forms (AS and ENK) and show a combination of stable and uncertain economic results. Drøs As, which is the only business with employees and operating income, represents an important core of the industry. At the same time, the other businesses (Dromov Pizzahus and Reidar Johan Sandal) show uncertainty in the operating result, with zero income and employees. The industry has experienced both rising and falling trends over the years, with a significant increase in sales and operating result in 2022–2023. For entrepreneurs, this may indicate opportunities to establish themselves in a market segment that has grown, but which is simultaneously marked by uncertainty and competitiveness.

Over the years, the restaurant industry in Suldal has shown uneven development. Sales have varied between NOK 897,000 and NOK 3.8 million, with an increase of 4.1% in 2025 compared to 2024. The number of employees has been more stable, with 18 employees in 2026, although there have been large variations over time (from 8 in 2016 to 19 in 2017). Drøs As has been the only business with an operating result and employees, with an EBITDA margin of 7% and an operating result of NOK -22,000 in 2026. The other businesses have not reported income or employees, which may indicate uncertainty in the business model or a new establishment in development.

In Suldal, three businesses are registered in the restaurant industry:

1. Drøs As (Gata 12, Sand) – AS form, established 2015, 18 employees, operating income of NOK 4.1 million, sales of NOK 3.9 million, EBITDA of NOK 318,000 and an operating result of NOK -22,000.
2. Dromov Pizzahus (Nesflòtvegen 21, Nesflaten) – ENK form, established 2026, 0 employees, no income or operating result.
3. Reidar Johan Sandal (Gardavegen 49, Nesflaten) – ENK form, established 2013, 0 employees, no income or operating result.

The organizational forms are dominated by AS (1 company) and ENK (2 companies). None of the businesses are registered in bankruptcy, but two of them have no operating results or employees, which may indicate uncertainty in the business model or a new establishment in development.

Geographically, the restaurant industry in Suldal is concentrated in Sand, where one business (Drøs As) is registered with 18 employees. In Sand, operating income is reported at NOK 4.1 million, sales at NOK 3.9 million and EBITDA at NOK 318,000. There are no businesses registered in Nesflaten, even though two companies are established there. This may indicate that Sand is the most important central area for the restaurant industry in the municipality, with a clear concentration of operational activity and employees.

The industry has been marked by a mix of stability and uncertainty. Drøs As has been the only business with an operating result and employees, while Dromov Pizzahus and Reidar Johan Sandal have not reported income or employees. This may indicate that the latter two businesses are in an early stage of development or have an uncertain business model. Bankruptcy statistics show that none of the businesses are registered in bankruptcy, which indicates relative stability in the industry. Nevertheless, there is a clear variation in operating results and employees, which may be a challenge for entrepreneurs wishing to establish themselves in the municipality.

For entrepreneurs in Suldal, the restaurant industry can offer opportunities, especially in Sand, where there is an existing business (Drøs As) with an operating result and employees. This can provide a foundation for establishing oneself in a market segment that has grown over the years, with an increase in sales and operating result in 2022–2023. Nevertheless, it is important to be aware of the uncertain trends that have been present, especially in recent years. Entrepreneurs should also consider competitiveness and the opportunity to differentiate themselves in a market segment with few businesses, but with a certain degree of uncertainty in operating results and employees.

In comparison with the broader category restaurant / café in Suldal, which includes four businesses, the restaurant industry (as a subcategory) shows less development. The broader category has a higher number of employees (58 in 2016, 27 in 2026) and higher sales (NOK 7.4 million in 2016, NOK 12.5 million in 2025). Nevertheless, the restaurant industry has shown a stronger increase in sales in 2022–2023 (from NOK 2.4 million to NOK 3.8 million) compared to the broader category. One of the key peer businesses in the broader category is Kulp As (Sandsvegen 134, 4230), which has NOK 8.9 million in sales and NOK 958,000 in EBITDA. This shows that the broader category has a higher operating result and sales, which may be an important factor for entrepreneurs considering establishing themselves in Suldal.

The restaurant industry in Suldal has both opportunities and challenges. With growing sales in 2022–2023 and an existing business (Drøs As) in Sand, it may be possible to establish oneself in a market segment that has grown. Nevertheless, it is important to be aware of the uncertain trends that have been present, especially in recent years. Entrepreneurs should also consider competitiveness and the opportunity to differentiate themselves in a market segment with few businesses, but with a certain degree of uncertainty in operating results and employees. SmartGrunder can help entrepreneurs find suitable addresses and develop strategies to establish themselves in Suldal.