More than one in three pubs (36%) across Dublin will reduce their headcounts due to the minimum-wage increase introduced by the government, according to a new survey undertaken by the Licensed Vintners’ Association (LVA).
A further 21% of pubs in the capital also note that they will hire fewer staff members than previously planned, due to the wage increase.
Over 350 pubs from across Dublin – approximately half the total number of pubs in the capital – took part in the survey.
‘Simply Can’t Cope’
“Hospitality businesses simply can’t cope with the increased cost of doing business that is being foisted on them by the government,” said Donall O’Keeffe, CEO of the LVA.
“Over the last year, there have been increases in VAT, sick pay, employers’ PRSI and minimum wage, with significant further increases to come.
“This simply isn’t sustainable, and it should come as no surprise that so many hospitality businesses are closing in this environment.”
‘Too Much, Too Fast’
Almost half of all respondents from the 350 featured Dublin pubs (46%) believe that they will be forced to increase their prices if the government continues with its plans to significantly increase the minimum wage over the next few years.
Ninety-six per cent (96%) of Dublin publicans believe that the government-mandated changes to employment conditions, such as the planned increases to minimum wage, changes to sick pay and employers’ PRSI, as well as the pension auto-enrolment, represent ‘too much, too fast.’
Additionally, 94% of Dublin publicans want the government to slow down the introduction of the Living Wage.
Inflation
“That is why we are calling for the government to slow things down,” said O’Keeffe.
“We understand the need for a living wage, but we feel that it should be introduced by over a five-year period, from 2025 to 2029, and that the 2025 increase in minimum wage should be in line with inflation.”
Insurance Premiums
The survey also showed that almost two in three Dublin pubs (64%) received an increase in their insurance premium at their most recent renewal, while one in six Dublin pubs (15%) notes that it is no longer profitable to open seven days a week.
“The government also needs to help the sector by making things more competitive, and that means returning the VAT rate to 9% for food purchases and reducing the punitive excise rates on alcohol, which remain at the highest levels in Europe.”
