Ireland's hospitality sector is facing a significant crisis, with over 600 restaurants and food-led businesses closing in the past year. Notable establishments such as Blazing Salads, Dillingers, Assassination Custard, and Brasserie Sixty Six have succumbed to the pressures of rising costs and changing consumer habits.
Blazing Salads, a pioneering vegetarian and vegan restaurant that had operated for 37 years, cited inflation, an increase in VAT, and a shift in customer behavior due to remote working as key factors in its closure. The Restaurant Association of Ireland (RAI) reports that an average of two restaurants or cafes are shutting down daily, posing a serious threat to the country’s independent food scene. In response, owners marched to the Irish parliament to voice their frustrations.
Among the protesters was Darina Allen, the chef and founder of Ballymaloe Cookery School. At 76 years old, she expressed her anger, saying, “I’ve never protested before, but I felt it was important to support this cause.” Allen highlighted the desperation felt by many in the industry who simply want to earn a fair living and support their staff.
A recent VAT increase from 9% to 13.5% has placed an additional burden on food businesses already grappling with rising energy costs and inflation. Restaurants argue that the timing of this hike is inappropriate, especially given the current economic climate and the challenges posed by the cost of living crisis.
One restaurant owner stated, “I’ve been in this business since 1982, and I’ve never seen it this bad.” They expressed hope that the government would address the VAT increase, especially considering the country’s strong financial position following a recent €14 billion back tax judgment from Apple.
Despite the country’s robust economy, many in the hospitality sector feel overlooked. Allen pointed out that while government officials celebrate economic growth, those in the restaurant industry are struggling to make ends meet. “At the parish level, it doesn’t feel like we are riding the crest of a wave,” she said.
There are growing concerns that the current crisis could lead to a decline in independent restaurants, which may be replaced by larger chains that can better absorb increased costs. Barry Murphy, who operates a small fish and chip shop in Laois, noted a shift towards "vape shops and charity shops" taking over former cafe locations in small towns.
Stephen Buckley, whose family has run FX Buckley, a Dublin-based butcher and steakhouse since 1930, warned that the collapse of local restaurants could erode the cultural fabric of cities. “People come to Ireland for its culture, and restaurants are a vital part of that experience,” he stated.
Murphy highlighted the impact of the VAT hike, which left him with an extra €25,000 to pay out. He emphasized the difficulty of operating in a climate of slim profits and constant financial pressure. “Even ignoring the VAT, it’s extremely challenging to manage from month to month,” he remarked.
Allen criticized the government for not recognizing the broader implications of these closures. She noted that Irish cuisine has evolved significantly, and high-quality local produce has become a major draw for tourists. “There’s a feeling of lack of appreciation for what this sector contributes to Ireland,” she said.
One of the latest casualties, Assassination Custard, known for its quirky offerings and popularity during lunchtime, also closed its doors. Co-owner Gwen McGrath stated that it wasn’t just the VAT increase that led to their closure but the overall difficulties of running a food business, which involves much more than just preparing meals. “Feeding people is just a small part of it. There’s so much more to manage behind the scenes,” McGrath explained.
As the crisis unfolds, it remains to be seen how the government will respond to the growing calls for support from the beleaguered hospitality sector.
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