188 food led businesses have closed since July – Restaurants Association

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Adrian Cummins CEO of the Restaurants Association of Ireland

Some 50 food-led businesses closed last month and 188 have closed since July, according to the Restaurants Association of Ireland. 

CEO of the association, Adrian Cummins said: “his is an unprecedented level of closures and our industry is now at crisis point as more and more local restaurants and café are being forced to shut around the country because of sky-highcosts.”

Mr Cummins outlined the factors contributing to their increased costs, such as wage inflation, pension auto-enrollment, extra days of sick pay, higher bank interest rates, and rising supplier costs. These have resulted in a tighter profit margin, from 3-4pc to a negative 6pc. There is also the upcoming warehouse tax due in May, which many businesses might struggle to pay.

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The impact seems to be hitting smaller businesses first, but there are concerns about high-end establishments as well. The closure of businesses in the hospitality industry has been significant, and there is a lack of government support. You mentioned three main solutions: extending the repayment period for the warehouse tax, reinstating the 9pc VAT rate for food businesses, and addressing the general cost of doing business, including insurance costs and additional government-related expenses.

Additionally, you highlighted the need for a task force for the hospitality industry, as there have been numerous closures and job losses. There are concerns about the lack of a food strategy, which should not only promote food tourism but also support local businesses. Data on tourist numbers is also lacking, making it difficult for business owners to plan for the future. 

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He said the impact of tourism bed stock displacement in rural areas and the allocation of grant funds primarily to visitor attractions instead of downstream businesses like pubs and restaurants causes further strain on local economies.

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