Media Coverage – July 2024

Restaurants group reiterates calls for permanent restoration of 9% VAT rate ahead of October Budget

The chief executive of the Restaurants Association of Ireland (RAI) has reiterated calls for the 9% VAT rate to be reinstated for the hospitality industry, warning of mass closures across the sector if the current rate of 13.5% is maintained. In its pre-budget submission, the lobby group cited a recent survey in which almost three-quarters of its members said they do not expect their business to be open this time next year if the 9% VAT rate is not reintroduced.

Irish food-led sector margins shrink to 0.8% according to industry report

Irish food-led businesses have been put into ‘survival mode’ with a new report warning of razor-thin profit margins as the industry grapples with rising operational costs and government pressure. The report by accounting software firm, Outmin and the Restaurants Association of Ireland (RAI) found that average net profit margins among food-led hospitality businesses reached just 0.8% in the first three months of 2024, after suffering a net loss of 1.6% in the final months of 2023.

McDonagh calls for 9% VAT rate to be brought back

Supermac’s Managing Director Pat McDonagh has called on the Government to reintroduce the 9% VAT rate for the hospitality sector in Budget 2025. Pat McDonagh, who also owns and operates the SÓ Hotels group, said that the future of hundreds of small businesses will depend on decisions made by the Government over the next few weeks and that these decisions will have long-term repercussions for the country.