President’s Report – August 2024

As we move into August, it’s evident that this summer has been a mixed bag for our industry. Members of the Restaurants Association of Ireland in tourist-dependent areas report inward tourism figures to be very shaky. Elsewhere, while we’ve seen a reasonable level of footfall, this summer has been far from stellar. Many of our establishments are busy, but this has not translated into healthier profit margins than in recent months. The harsh reality is that the pressures on our bottom lines remain intense, with sky-high costs continuing to hurt. We are also, unfortunately, beginning to witness a resurgence in the number of closures of restaurants, cafés and other food-led businesses across the country. We will certainly see more closures in the months to come as the summer season winds down.

In the midst of all of the challenges we face, it is now time for us as an industry to turn our focus to National VAT9 Day which is taking place on August 9th. This day will mark a pivotal moment in our ongoing campaign to secure the reinstatement of the 9% VAT rate – a move that is critical to the survival of our sector. By now, you should all have received a package from the RAI containing posters, stickers, till wobblers, and window decals. Please erect and use each of these materials for the first time on August 9th and continue to use them right up until the Budget which, this year, will take place on Tuesday, October 1st. These materials that we have sent you are designed to be highly visible in your establishments and will help ensure that our message is front and centre in the minds of both customers and political representatives who go through our doors each day.

On National VAT9 Day, it is essential that we all come together to amplify our voices. I strongly encourage every member to take to social media and make our message heard loud and clear. Please post across Instagram, Twitter, Facebook, and LinkedIn, tagging the Restaurants Association of Ireland and using the hashtag #NationalVAT9Day. When posting to Instagram and Instagram stories, please also tag the vat9.now page of grassroots supporters of our campaign. By doing so, we can kick off a renewed wave of support and awareness that will be impossible for the Government to ignore.

This campaign is not just about a single day; it’s about keeping the pressure on consistently until the Government acts. The 9% VAT rate is more than just a number – it represents the difference between survival and closure for many of our members. In my conversations with restaurateurs, café owners and other food business operators across the country, the message is clear: without this adjustment, the future looks increasingly bleak. We need the Government to understand that this is a lifeline, not a luxury, and to act accordingly as soon as possible.

As we push forward in these difficult times, let’s remember that our industry is one built on resilience, passion and a deep commitment to hospitality. These qualities have carried us through tough times before, and they will carry us through this as well. The path ahead may be challenging, but I am confident that by standing together, we can secure the future of our beloved industry through the reinstatement of the 9% VAT rate.

Yours in hospitality, 

Paul Lenehan

President of the Restaurants Association of Ireland