On the evening of the 26th, restaurant rows near Mikonkatu in central Helsinki were quiet. The area is usually relatively crowded with diners and tourists because restaurants and bars are clustered there, but the recent economic downturn has dampened consumer sentiment and reduced dining-out demand. Even during dinner hours, empty seats were noticeably increasing inside restaurants. A staffer there said, "This area is usually livelier at night than during the day, but these days people dine out less than a few years ago."
As the recession curbs spending, self-employed workers in Helsinki are seeking breakthroughs through localization strategies and digitalization. They are developing products that can catch the eyes of tourists and cutting expenses with operating methods that minimize floor service.
According to Statistics Finland on the 11th, as of the end of last year, bankruptcies, including those by sole proprietors, reached 3,906, hitting the worst level since 1996. The figure reflects closures and liquidation proceedings by those who could not overcome management difficulties, marking the worst report card in about 30 years. Bankruptcies were concentrated in Helsinki and the capital region, the economic hub, and many in the accommodation and food service sector, where the proportion of self-employed is high, were included.
A symbolic scene also unfolded recently, showing the wobble in Helsinki's commercial districts. The Starbucks on the first floor of the Academic Bookstore building, considered a Helsinki landmark, is set to close. The large franchise that occupied a space designed by Finland's representative architect Alvar Aalto decided to withdraw 13 years after opening. Changes in downtown foot traffic and rising rents and operating costs are combining to push dining businesses out of the center or to scale down their stores.
Markku, who works at a cafe in central Helsinki, said, "Things are better than at the end of last year, but talk about the economy being bad keeps coming up, and people running shops seem to have it especially hard," adding, "Locals have become more cautious when buying things, and they are eating out less."
While locals have closed their wallets, tourists are increasing their spending and filling the gap. Tourist overnight stays in Finland last year reached 7.2 million, a record high. That was up 12% from a year earlier. Visitors are coming not only from Japan and China but also from the United States, the United Kingdom and Germany. Thanks to that, attractions such as Old Market Hall, Helsinki's representative indoor market, were packed with visitors. Self-employed workers are also striving to attract tourists by showcasing eco-friendly Finnish wooden accessories and popular character goods.
A Korean tourist, a person surnamed Choi who visited Helsinki for the first time in about 10 years, said, "Souvenirs have become more diverse." Choi explained, "In the past, there weren't many options, so I bought a thermometer with Finland's representative character 'Moomin,' but now, beyond Moomin, there are magnets in various designs and wooden goods, making it more fun to browse and buy than before."
Self-employed workers in Helsinki are also continuing to look for ways to improve store operating efficiency. To cope with hiring difficulties and steep labor cost increases, more stores are reducing floor service staff and introducing self-service kiosks. They have also cut operating expense by adopting automated systems for everything from reservation management to inventory control and customer service. In the digital-based store operation process, they provide services not only in Finnish but also in English to reduce inconvenience for tourists unfamiliar with Finnish.
Mika, who works at a restaurant in Helsinki, said, "After going through an economic cold snap at the end of last year, there's a growing awareness among the self-employed that digital transformation is necessary," explaining, "We are converting some systems to digital to create conditions that let us focus on the essence of service."