President’s Report – January 2026

Dear Members,

Welcome to your January Newsletter.

As we begin a new year, I want to wish you, your families and your teams a very happy and prosperous New Year. I hope the Christmas period offered you at least some chance to step back, catch your breath and spend time with family and friends.

2025 was a year that brought both progress and pressure for our sector. There were positives that we fought hard for over a long period of time, most notably the renewed focus on food tourism and the securing of the return of the 9% VAT rate. These were not easy wins and they reflect the collective effort of the RAI team and members across the country who continued to make the case for our industry. At the same time, none of us are under any illusion that these gains on their own solve the continued challenges we face on a daily basis.

Costs have not come down. Labour costs in particular continue to rise and January, as we all know, is always one of the most difficult months of the year. Looking ahead, 2026, particularly the first six months, will be extremely challenging for many businesses.

The increase in the minimum wage, which has risen by 35% over the past four years, is something I feel directly as a restaurant owner myself. While many businesses pay above the minimum wage, the real issue is the knock on effect across the entire wage structure in a business. Every increase ripples through, pushing labour costs higher and higher. Many businesses are now operating with labour costs exceeding 40%, even before pension auto enrolment is taken into account. These continual year on year increases are simply not sustainable and they are putting viable businesses under serious strain.

As President of the Restaurants Association of Ireland, but also as someone who is living these challenges every day, I want you to know that your concerns are being heard and clearly articulated. In every engagement with public representatives, we are making the case that the current trajectory cannot continue. The most labour intensive sector in the State cannot keep absorbing rising costs without meaningful changes.

Over the next 12 months, the Council and the team at the RAI will continue to represent you and your businesses as strongly as possible. While the return of the 9% VAT rate will provide some much needed relief and is something we are grateful for, our focus continues to be on restoring the long term viability of the sector.

If I, or any member of the RAI team, can support you in any way over the year ahead, please reach out. We are here to listen, to represent you and to fight for the future of an industry we all care deeply about.

I know how difficult this time of year can be, particularly in the current climate, but I remain fully committed to standing with you and advocating on your behalf.

Yours sincerely,

Sean Collender 
President
Restaurants Association of Ireland