THE €10 pint is on the way if this Government stays in charge, a Dublin publican has claimed.
While one pub boss warned: “Frozen cod is making a comeback to a pub near you.”
Small pub, restaurant and café owners were devastated this week when the Government refused to back them with a lower VAT rate.
As costs hurtle out of control, Ronan Lynch, who owns the Swan Bar on Dublin’s Aungier Street, told The Irish Sun: “€10 pints will become a regular thing if this Government stays in charge.”
Paul Lenehan, who owns the Harte’s Group of gastropubs in Co Kildare, warned: “Irish beef will probably disappear from menus because restaurant owners will look at importing alternatives.
“You’re going to see frozen cod on menus.”
And he had strong words for our politicians. He fumed: “We’ve heard nothing from Catherine Martin on any of this — the Minister for Tourism. Something like €3 out of every €5 a tourist spends is on food. It’s a huge part of a tourist offering.”
Over 600 restaurants and food businesses have closed their doors this year since the higher VAT rate was returned a year ago — and the sector has been pleading for months for a lifeline.
It’s predicted that 1,000 more could go to the wall in the next 12 months with the loss of about 15,000 jobs.
And those that are able to remain open have warned that prices will have to soar and cost effective menus will be introduced, affecting such offerings as beef, lamb and fish.
The 80 cent increase in the minimum wage has also hit the industry, which has described a €4,000 energy grant for some businesses as “insulting”.
Suzanne Zelman, who owns the Eden House gastropub beside Marlay Park in Rathfarnham, said they are always packed and booked out.
But any money they make seems to go to revenue and the increase in the minimum wage will see €2,000 added to her monthly wage bill.
She said: “The 80 cent per hour minimum wage will give us an increase in our payroll of €2,000 a month. Government expect us to absorb this cost. We don’t even qualify for the €4,000 energy grant that they announced.
“We have a huge food offering and have won best carvery in Leinster. We host massive pre and post parties during the Marlay Park concerts.
“People look at us and think we’re making huge profits. We’re consistently busy and booked out.
LITTLE PROFIT
“We employ 50 staff but the reality is we are looking at balance sheets wondering where all the profit is going.
“We have a good business model and work so hard but have nothing to show for it. Our cash-flow and profits are sucked into paying debt warehousing, a consequence of Covid, PRSI, VAT — all revenue costs.
“Forget the normal business-related costs, lights, heat, gas, wages — it’s the massive VAT bills that are killing hospitality.
“We ourselves have been in business 20 years and have always been innovative in our approach to recessions, the pandemic, but this is completely out of control.”
€10 PINT
On the risk of a €10 pint, Swan bar owner Mr Lynch said: “The cost of everything has gone up, and we were closed for 20 months because of Covid making no trade at all.
“All the restaurant closures around us because of the VAT rate have impacted us greatly.
“Then we have the minimum wage increases and the increase in costs to suppliers. The Government are absolutely tone deaf to the needs of the hospitality industry. Irish people don’t come in to the town anymore. Many people have remained working from home so a lot of our trade is tourism and the Government are doing nothing to support tourism in a country renowned for its hospitality.
“Food and drink is the lifeblood of Ireland. The only thing that we can do is increase prices. It’s simple economics because it’s about making a margin and we just don’t anymore. And if you increase prices you run a real risk that people will stop coming out.”
“You’re going to see frozen cod on menus.”
Paul Lenehan
Suzanne said they recently paid off the mortgage on their building but increasing their prices and looking at their menu is the only thing they can do, saying: “I don’t know how gourmet restaurants can afford to stay open with the high wholesale costs on the likes of lamb and beef.
“The only thing we can all be certain of is we will have to put our prices up again to cover the Government failings.
“We don’t want to charge higher prices, it’s the customers that lose out. People will just stop coming out altogether. If we are finding it difficult trading, in a building that we now own, after just making our last payment on a 20-year mortgage, I don’t know how on earth restaurants, bars and cafes are paying huge rents on top of revenue costs.
“We’ve taken lamb off the menu because it’s just too expensive to bring. Other businesses will also be looking at their menus and wondering what must come off.
‘INSULTING’
“We’ve been left at and sea and I have no idea how to magically make the figures add up.”
Mr Lenehan said the Government’s response about putting more money in people’s pockets to enable them to eat and drink out more was “clueless”, while the energy grant was insulting.
And he explained that with rising supplier costs, menus are going to suffer as business owners seek cheaper imported beef and fish. He told us: “Of course prices are going to rise, there are few other options.
“No one wants to increase prices because people will stop going out altogether and then what do we do?
“The Government saying people have more money in their pockets to spend is completely clueless. That’s not the issue, it’s the price of doing business.
“A couple going for a meal might have a budget of €100 or €150 to spend but they will still go out with the same budget except they might share a starter or share a dessert.
BUDGET 2025 MEASURES - WHAT DOES IT DO FOR YOU?
ONE-OFF PAYMENTS:
- €250 electricity credits – 2 x €125 with one paid in 2024 and one in 2025
- Double week for all long-term weekly social welfare recipients in October
- €300 Fuel Allowance lump sum in November
- €200 Living Alone Allowance lump sum this winter
- Double month of Child Benefit in November AND December
- €400 Working Family Payment lump sum this winter
- €100 Qualified Child Increment lump sum this winter
- Social welfare Christmas bonus in first week of December
- €400 lump sum to selected welfare categories this winter
- Double payment of Foster Care Allowance in December
TAX MEASURES:
- €125 Increase in the Main Tax Credits
- €2,000 Increase in the Standard Rate Cut-off Point
- €150 Increase in the Home Carer Tax Credit
- €150 Increase in the Single Child Carer Credit
- €300 Increase in the Incapacitated Child Tax Credit
- €300 Increase in the Blind person Credit
- Reduction in the four per cent USC rate to three per cent
- Increase in the Rent Tax Credit from €750 to €1,000
- Increase in the Excise Duty and VAT on a pack of cigarettes by €1 – bringing price to €18.05
- VAT on Heat Pumps decreased to nine per cent
- Sea-going Naval Personnel Tax credit extension
“The restaurant or pub owner isn’t making any more money. We also want to support Irish farmers and Irish produce, but we’re going to have to look at cheaper alternatives.
“Irish beef will probably disappear from menus because restaurant owners will look at importing alternatives. You’re going to see frozen cod on menus. There’s nothing wrong with it but not what we want to be serving. Beef will be imported too but it’s just not the same. We’ll have to look at cutting costs and this will be one area.
‘WON’T BE FORGOTTEN’
Chief Executive of the Restaurants Association of Ireland, Adrian Cummins, said beef will be one of the first items to go as restaurants struggle to keep costs down.
He said: “It’s just one of the realities we’re faced with. The wholesale price of beef is very high and it will disappear from Irish menus very quickly because other costs will have to be kept down.
“It was devastating what happened this week. There is a general election just around the corner so it won’t be forgotten.
“We’ll regroup, speak to politicians and see who will back us ahead of the general election.”
![Catherine Martin (born 7 December 1972) is an Irish Green Party politician who has served as Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media since June 2020 and Deputy Leader of the Green Party since June 2011. She has been a Teachta Dála (TD) for the Dublin Rathdown constituency since 2016.[1]
https://en.wikipedia.org/wiki/Catherine_Martin_(politician)](http://www.thesun.ie/wp-content/uploads/sites/3/2024/10/Catherine_Martin_TDjpg-JS639677596.jpg?strip=all&w=340)
