- Hospitality insolvencies fell by 23pc in the first nine months of 2026
- The VAT rate for restaurants and catering was reduced from 13.5pc to 9pc on 1 July 2026
- The sector recorded 25 insolvencies in Q3 2026
- Retail insolvencies increased by 25pc
- Construction industry failures increased by 26pc year-on-year
The number of hospitality companies going out of business has fallen by 23pc in the first nine months of 2026. The decline has been linked to the reduced VAT rate for the sector.
According to the latest insolvency barometer from PwC Ireland 85 to 86 hospitality companies went out of business between January and September compared to 111 failures during those months in 2025. The government reduced the VAT rate for restaurants and catering businesses from 13.5pc to 9pc on 1 July 2026.
The sector recorded 25 insolvencies in Q3 2026 which sits below the quarterly average of 35 business failures tracked since early 2023. Retail insolvencies increased by 25pc and construction industry failures increased by 26pc year-on-year.
