Seventy one restaurants, cafes, and food businesses closed permanently in February, according to the restaurants Association of Ireland.
Reasons for closures of businesses such as Nash 19 in Cork, Garret’s Restaurant in Killarney, The Chart House in Dingle and Prime 74 in Tipperary town included high input costs, unsustainable Vat rate, and staffing issues
Minimum wage increases, statutory paid sick leave, and pension auto-enrolment added to operator costs.
The association also says there were 46 insolvencies in the hospitality sector in the January-March period. A report by PwC report this month showed a 142pc increase in insolvencies for the hospitality sector in the first quarter of 2024 compared with the same period last year.
They say pressure on businesses are due to difficulty in retaining and attracting suitable kitchen and management team members, and say solutions include decreasing interest on warehoused debt, returning Vat rate on food to 9pc, and improving conditions for hospitality workers to attract and retain talent.
