The vibrant landscape of Ireland’s culinary scene is dimming as a wave of closures sweep through the industry, with more than 600 restaurants, cafes, and eateries shuttering their doors in the past year.
Recent casualties include beloved establishments such as Blazing Salads, Dillingers, Assassination Custard, and Brasserie Sixty Six in Dublin, as well as Church Lane and Sage in County Cork, and Barnacles in Galway.
Blazing Salads, a pioneering veggie and vegan restaurant, had proudly served the community for 37 years.
It announced its closure citing the pressures of inflation, a rise in VAT, and a shift in customer habits due to remote work.
The Restaurant Association of Ireland (RAI) reported that an average of two food-led businesses are closing every day, signalling a crisis that threatens the independent hospitality sector.
In Cork, the renowned chef and founder of the Ballymaloe Cookery School, Darina Allen, voiced her anger during a protest in Dublin.
Speaking to The Guardian, she said: “People are really furious. They just feel abandoned, unappreciated.”
The RAI points to a recent 50 percent hike in the VAT rate – from nine percent to 13.5 percent – as a significant blow to food businesses still recovering from the pandemic.
While the rate was lowered during COVID-19 to aid recovery, restaurateurs argue the economic landscape has not stabilised enough to warrant a return to the higher tax.
RAI chief executive Adrian Cummins warned many businesses were struggling as it was, but the higher VAT has tipped them over the edge.
He added: “But the reality is that these businesses are still in crisis and without a return to the lower VAT rate, we are guaranteed to see another wave of closures as we leave the summer behind and move into the hospitality sector’s quieter months.”
Many businesses are grappling with soaring energy costs and declining consumer demand due to the ongoing cost of living crisis.
At a protest outside the Irish parliament, one veteran restaurateur said he had never seen it this bad in his 40 years in the industry.
Despite a government budget announcement including some energy bill support, restaurateurs expressed disappointment over the lack of action regarding VAT.
Allen said there is a disconnect between government narratives of economic prosperity and the reality faced by local businesses.
Concerns are mounting over the potential loss of independent outlets, which may be replaced by chains capable of absorbing higher costs.
Barry Murphy, who operates a small fish and chip shop in County Laois, noted the rise of “vape shops and charity shops” in areas once bustling with cafes and restaurants.