In a sobering report by the Vintner’s Federation of Ireland (VFI), the future of Ireland’s pubs looks murky. With 84% of publicans facing a dry spell on the succession front and a third considering hanging up their aprons, it’s clear the industry needs a stiff drink.
According to their research, Irish pubs are on the brink, thanks to rising costs, including proposed living wages, which are putting pressure on pubs across the nation. Their latest survey in the Spring VFI Voice magazine reveals that nearly half of rural pubs have been hit with cost hikes over 30% this past year.
They say that energy prices, staff costs, taxes, excise duty, and insurance are bleeding them dry. Since 2005, a whopping 2,000 pubs have bitten the dust, with over 120 shutting their doors in 2022 alone. Publicans are feeling the heat, saying the costs of staff, insurance, and utilities are just too much.
Many pubs are cutting their hours and barely scraping by, which hits local jobs and tourism hard. The VFI is calling for a lifeline from the government to stop more closures and keep rural businesses afloat.
While some establishments thrive, many face closure, risking the heart of local communities. The VFI is calling on the government for a round of support measures, from VAT relief to succession planning schemes, and practically begging the government to drop the VAT rate for hospitality from 13% to 9% to ease the pain and help tackle their skyrocketing energy costs.
With pubs shuttering faster than pints downed on a Friday night, it’s time to remember that your local may need a little love this summer.
Words: Shamim De Brún
