Ireland’s Restaurant Industry: A Time of Triumph and Tragedy
Irish cuisine is gaining global recognition, with chefs, food producers, and restaurants earning prestigious accolades. However, behind the glossy façade, a concerning reality exists: the restaurant sector is struggling. Over 600 restaurants shuttered their doors in the last year alone, and the Restaurants Association of Ireland (RAI) predicts an alarming 1000 more closures by October 2025. As costs soar, a challenging future looms for Ireland’s culinary scene.
A New Restaurant Opens Amidst The Storm
“I’m really excited. The place is coming together,” says Reggie White, renowned Dublin pizzaiolo, amidst the flurry of preparing his new restaurant, Reggie’s, in Rathmines. Despite the grim statistics, White is undeterred.
“My dream is to be a part of the fabric of the neighbourhood where I’m setting up and be there for 20 years. I want to be one of those places that in 20 years’ time, people are like ‘God, I remember going on my first date there, and now I’m bringing my teenage kids here.’ I want to be part of a community,” he shares with infectious enthusiasm.
Reggie White is planning to open a new restaurant in Rathmines
Weaving a warm and inviting haven amidst a backdrop of industry woes, White’s story highlights the resilience and unwavering passion driving individuals within the Irish restaurant industry.
A Perfect Storm: The Challenges Facing Restaurants
For many, though, the current situation is unsustainable. JP McMahon, Michelin-starred chef and restaurateur behind Cava Bodega and Aniar in Galway, points to a confluence of factors threatening the industry’s core.
“If there wasn’t, all of those things, I think things might be manageable. But when you have five out of five, it becomes very, very difficult,” he laments, referring to the combination of increasing costs like wages, PRSI contributions, sick days, coupled with diminishing profit margins.
Michelin star chef JP McMahon
McMahon says the traditional calculations restaurants have relied on for decades, where 30% covers wages, 30% rent and energy, 30% on food and drink, leaving 10% to the bottom line, have become relics of a bygone era. Now, achieving even 2% profit is a Herculean task.
“It has got to the point now, where you could be doing two or three percent and you need everything to be lined up to get that two or three percent,” he warns.
High Prices: A New Reality?
The squeeze on restaurants has left many with little choice but to raise prices, but finding the right balance between profitability and affordability is a tightrope walk. Gillian Nelis, editor of Food & Wine magazine, believes a paradigm shift in consumer mindset may be necessary.
“Ultimately maybe that’s just a mindset change that we’re going to have to have. That if we want to have a thriving independent restaurant sector, then this is what it’s going to cost to run that in this high-cost economy. That’s something I think consumers will have to grapple with a little bit,” she suggests.
Gillian Nelis, editor of Food & Wine magazine
Economics and State Intervention: A Heated Debate
Dan O’Brien, Chief Economist at the Institute of International and European Affairs, argues against state intervention, stating, “There are thousands of restaurants. They open and they close all the time. That’s the nature of a competitive industry.”
Chief Economist at the Institute of International and European Affairs Dan O’Brien
He believes that while businesses making profits are essential to the economy, taxpayers’ money should not be used to support one sector.” There was then a good case for taxpayers’ money to go to businesses. Right now, at a time of full employment, there really is no case to give taxpayers money to one sector of the business community,” he maintains.
Forced Closure: A Personal Story
Bec Feely, founder of Kale and Coco, paints a stark picture of the realities faced by many restaurateurs. Despite doing well in 2023, the looming economic pressures forced her to close her bricks-and-mortar café in Grangegorman at the end of last year.
“The following year we were going to have minimum wage go up, PRSI go up, additional sick leave, potentially employer-matched pension scheme and then the VAT rate going back up, it was very hard to look at that coming down the line and feel kind of positive about sticking it out for another year,” she explains.
Bec Feely established Kale and Coco in 2017. It closed earlier this year
Feely emphasizes the additional burdens faced by restaurateurs, stating, “It’s a lot for one person to manage. And I think we haven’t really caught up with the amount of pressure and additional workload that these kinds of businesses are taking on. It’s very hard to justify all that stress and all that workload for so little reward.”
A Call to Action: Support Your Local Restaurants
The Irish restaurant industry is at a crossroads. While challenges abound, the passion, resilience, and entrepreneurial spirit of individuals like Reggie White fuel hope. Support your local restaurants, engage in meaningful conversations about industry pressures, and celebrate the culinary heritage that defines Ireland
