Media Coverage – January 2025

Restaurant industry welcomes plans to cut VAT rate to 9%

The new draft programme for government includes plans to cut the VAT rate to 9% for food services, entertainment and hairdressing in the next budget. Adrian Cummins, chief executive of the Restaurants Association of Ireland, said the reported reinstatement of the 9% VAT rate is greatly welcomed. “This marks a significant victory for small, independent restaurants, pubs, cafés and other hospitality businesses which, in total, employ 270,000 nationwide,” Mr Cummins said.

Planned €500m VAT subsidy for Irish restaurants shows how easy it is to spend taxpayers’ money

In the next budget, VAT for food-led businesses, including restaurants and cafes, is set to be dropped from 13.5% to 9%. It will mark the fourth time in slightly over a decade that the industry’s VAT rate has been changed.

‘We are saying goodbye’ – popular Dublin café Network announces its closure

The Restaurants Association of Ireland estimates that two restaurants or other food-led businesses are closing each day, with almost 580 restaurants, cafés, and other food businesses having closed their doors in less than a year.

‘Difficult year ahead’ as record rise in small businesses going bust

The Restaurant Association of Ireland said the true figure of closures in its sector last year was even higher, when sole traders were taken into account. It said it was aware of 870 businesses shutting down in 2024, including restaurants, cafes and pubs serving food.

RAI chief executive Adrian Cummins has demanded Government action, fearing 2025 will be even worse.

He said: ‘It is going to be a difficult year ahead, I think. It is critical that the Government cuts the VAT rate, as promised in the general election, which will give confidence to businesses that they will be able to continue to trade.’

‘It’s absolutely needed’ – Bread 41 owner on plan for 9pc VAT change for hospitality

The owner of a Dublin bakery has said news of the new government planning to restore the VAT rate to 9pc for parts of the hospitality sector, is “absolutely needed”. Eoin Cluskey, owner and co-founder of Bread 41, said the sector is “currently on its knees”.