The Restaurant Association of Ireland had last year warned that one restaurant per day was closing in the country, and that 80 per cent of restaurants were running at a loss.
Adrian Cummins, chief executive of the association said last week: “Nothing has been done by Government since this time last year to change this reality.”
Key measures
In a submission to the Minister of Finance for the 2011 budget, the group called on the Government to introduce a number of measures, which it said are crucial to set the sector on the road to recovery.
These include amongst others:
• The abolition of Sunday Premium Payments which is forcing restaurants to close on Sundays
• The abolition of the “anti-business” Joint Labour Committees
• Extending the 13.5 per cent VAT rate to apply to all ‘meals’ served in a restaurant (price reduction)
• Allowing investment in training to be offset against employer’s PRSI
• Extending re-investment incentives for the restaurant sector
Hospitality and economy
In its submission, the Restaurant Association of Ireland highlighted the importance of the restaurant sector to the tourism and hospitality industry, and to the Irish economy in general.
“The Irish restaurant industry employs 64,000 people and contributes €2bn to the Irish economy each year. Not only does it encompass a large number of owner operated SMEs, but is also a crucial supporter of small businesses, local agriculture and food producers throughout the country. A vibrant restaurant sector is crucial to a successful tourism ‘product’.”
According to the group, which represents restaurateurs in Ireland, the industry is being hit by high wage rates (second highest in Europe), high food costs (24 per cent above the European average) and a decline in overseas visitors (20 per cent fewer in the first six months of this year).
The Irish Restaurant industry employs 64,000 people (one in four tourism jobs) and contributes €2bn to the Irish economy each year. If current threats to the industry are allowed to continue, said the association, some 21,000 jobs could be at risk and there would be a potential €700m loss to the Irish economy.