The Restaurants Association of Ireland’s Cost of Doing Business 2025 survey reveals that rising costs are pushing food-led businesses towards closures, with 150 restaurants shutting down in the first quarter of 2025.
Businesses face staggering increases in utility prices, including a 96% rise in electricity and a 58% increase in gas costs since 2022, severely impacting their financial performance.
Over 170 business owners participated in the survey, with 65% reporting a decline in financial performance in 2024, leading to difficult choices like raising menu prices and reducing staff.
Adrian Cummins shared: “These findings are a glaring red alert for the Government and every politician in the country,” warning of the crisis in the food-led hospitality sector.
The survey indicates expectations for continued rises in food and beverage costs, with 94pc of respondents anticipating higher food prices in 2025 alongside potential staffing reductions.
Adrian Cummins shared: “These findings are a glaring red alert for the Government and every politician in the country. Restaurants are not just under pressure; they are on the edge. Restoring the 9% VAT rate isn’t a luxury, it’s a lifeline. If this trend continues, we are on course for another catastrophic year of shutdowns and job losses. When a restaurant or café closes in rural Ireland, it’s almost always permanent. These aren’t just economic losses, they rip through communities.”
