The local family-run pubs across Ireland appear to be at risk, with “little interest” from the next generation to take over. 

Roughly four in 10 publicans are currently considering retirement, according to a new report by the Vintners' Federation of Ireland (VFI). 

Some 84% of rural publicans also say family members have no interest in taking over the running of their pub. 

As they discuss the future of pubs at their AGM later today, VFI CEO Pat Crotty said it’s “very frightening” for pub owners right now. 

“There's very little interest from their family members to continue the business,” he told Newstalk Breakfast. 

“Why are these people considering retiring is because they don't see it as a sustainable model anymore. 

Government 'interference' in pubs

He said Government “interference” in pub regulations is “beyond what is normal” across the market. 

“Market forces can help or hinder all sorts of business and it may kill businesses, but Government interfering in the market is a different issue,” he said. 

“They're interfering at a level that is making it an unsustainable proposition. 

The VAT rate of 13.5%, according to Mr Crotty, is “literally taking away the cash flow” from local pubs. 

“Cash flow is the lifeblood of business,” he said. 

“Particularly when you then get to the next issue, which is the wages issue, because the wages come out of your cash flow. 

“If inflation is 3%, Government put 12% on the cost of minimum wage people and they are the people who largely populate the hospitality industry.” 

Capacity to make profit

Mr Crotty argued the risk pubs are facing is not simply because people are no longer interested in going for a pint. 

“That’s certainly part of it,” he said. “There are changing habits and COVID certainly caused people to reevaluate. 

“But there's an awful lot of pubs doing very good turnover, doing very good business, that are food-based, that have event and music. 

“It’s not for lack of business, it’s for lack of capacity to make a profit. 

“The pub doesn’t really determine the price – the market determines the price of a pint or lunch. 

“And the Government are the ones who are forcing pubs to put the price up.” 

VFI have said 40% of a pub’s turnover could go to labour costs alone with the introduction of a living wage by 2026, up from the current 36%.