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Cult bakery in Palma's Old Town seeks successor: Between selfies and €5,500 rent

Why Small Shops in Palma’s Old Town Struggle

High rent, staff costs and seasonality make it difficult for small Palma shops to stay profitable.

Published: April 22, 2026
Cult bakery in Palma's Old Town seeks successor: Between selfies and €5,500 rent

Answer

Why is it so hard for small shops in Palma's Old Town to survive?

In Palma's Old Town, high rent is often the biggest pressure on small businesses, especially in prime streets with heavy foot traffic. Add staff costs, taxes, seasonal demand and maintenance, and a shop needs strong and steady sales just to break even. A busy location can help, but visibility does not always translate into enough purchases.

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