The Vintners Federation of Ireland (VFI) is calling on the government to urgently address the 'severe challenges' facing the pub industry.
The federation has warned that without targeted support measures in the upcoming Budget on October 1, many pubs across the country risk closure, leaving a lasting impact on communities and the economy.
'Breaking Point'
“The pub trade in Ireland is at a breaking point," said Pat Crotty, chief executive of the VFI.
"Without meaningful government intervention, we will see a wave of closures that will impact communities across the country.
"Publicans need long-term support, not just one-off schemes, to navigate these unprecedented challenges.”
'Perfect Storm'
The VFI said the escalating costs of running a pub have reached 'unsustainable levels', with publicans struggling to break even, let alone turn a profit.
The group lists rising labour costs, the increase in energy and water bills along with some of Europe’s most punitive taxes as creating a 'perfect storm.'
In an effort to highlight soaring costs, the VFI has designed a poster explaining 'where the money goes' after a pint is purchased.
'Doesn’t Come Close'
“The Government takes €1.77 from every pint sold,” said Crotty.
“The drink supplier receives over €1.50 while staff costs account for €1.41. By the time overheads like insurance and TV sports subscriptions are paid the typical publican is left with just 17c.
"The average publican doesn’t come close to selling enough pints to make it a profitable business.”
'Heart Of Communities'
The VFI has called for a reduction of 7.5% in excise duty, a reduction in the hospitality VAT rate to 9%, a reduction in Employer’s PRSI, a reduction in VAT Rate from 23% to 21%, and for the the Living Wage introduction to be paused.
“The government must recognise that pubs are more than just businesses—they are the heart of communities, providing social hubs and supporting local economies,” says Pat Crotty.
“We need a clear commitment from the government that they understand the scale of the crisis facing our industry and will take decisive action to prevent the collapse of our cherished pub culture.”
