Hundreds of hospitality workers will take to the streets of Dublin today calling for action to prevent further pub, restaurant and café closures. 

The ‘Day of Action’ will see hospitality workers marching on the Dáil to warn that their industry is now in crisis. 

Over 700 restaurants, cafés and food businesses have been forced to close their doors since hospitality VAT was returned to 13.5% in September 2023. 

The industry has continuously been calling for the rate to be returned to 9% to save struggling businesses; however, Government opted against making the change in Budget 25. 

The hospitality groups are warning that other Government policies, including minimum wage hikes, sick day increases, and the planned introduction of auto-enrolment pensions are also putting businesses at risk. 

They say the changes have arrived virtually ‘all at once’ placing ‘immense strain’ on the industry. 

Nash 19 restaurant on Prince's Street in Cork city

Restaurants Association of Ireland CEO Adrian Cummins said hospitality workers would “much rather be serving great food and welcoming guests from across the country and across the world than travelling to Dublin to protest.” 

“Unfortunately, the lack of support for hospitality and small businesses in Budget 2025 made this demonstration inevitable,” he said. 

“We are calling on the Government to engage with us meaningfully so that we can collaborate on policies that will fix the broken model facing hospitality businesses in Ireland today and return viability to the sector.” 

"Breaking point"

Vintners' Federation of Ireland Chief Pat Crotty said publicans right across the country are “at breaking point.” 

“We are here today to demand action because, without urgent intervention, many pubs won't survive the winter. 

“The hospitality sector is the backbone of our communities, particularly in rural Ireland, yet, despite repeated warnings, the Government has ignored the reality we face.  

“The measures announced in the Budget simply do not go far enough to safeguard the future of our industry.” 

He said the current cost of business in the industry is “unsustainable,” adding that “Government must recognise this or face the loss of hundreds of small, family-run pubs that are integral to the social fabric of this country." 

Chez Max, French Restaurant in Palace Street, Dublin, 27-09-2020. Image: noel bennett / Alamy

Speaking last night, the Public Expenditure Minister Paschal Donohoe said cutting hospitality VAT would have prevented Government from making other changes in the Budget. 

“I know there was the longstanding case for changes in relation to VAT but any of the changes in relation to VAT would have cost many, many hundreds of millions of euro,” he said. 

“Anywhere between €600m and €800m I believe – which would have meant that there would be other things we would not have been able to do within the Budget.” 

The hospitality workers will march past the Department of Finance at 1.45pm before holding a rally outside Leinster House from 2pm. 

Budget 25

Ahead of Budget 25, Minister Donohoe warned that returning hospitality VAT would cost “well in excess of €700 million”. 

This year’s Tax Strategy Group papers warned that a return to 9% for the entire industry would cost the Exchequer around €764 million for the year. 

They say that offering the lower rate to food and catering services alone would cost an estimated €545 million. 

They also warn that splitting up the rate to offer a lower rate to food businesses would have "significant practical operational concerns" - and could potentially lead to an increase in tax avoidance.