Restaurants Association of Ireland launches 10-point manifesto ahead of imminent general election

[Monday – October 21st, 2024] – The Restaurants Association of Ireland (RAI) has today launched its ten-point manifesto in advance of an imminent general election to fix what it describes as the “broken financial model” facing Ireland’s hospitality industry.

With a general election almost certain to take place this month, the RAI is calling on political parties to urgently adopt policies that will secure the survival and growth of Ireland’s independent restaurants, cafés and pubs.

The manifesto launch follows a rally held last Tuesday outside Leinster House, where 1,800 hospitality workers and small business owners gathered to highlight their sector’s deepening financial struggles. At the rally, a number of the speakers outlined how Ireland’s SME community will be keeping a close eye on each party’s election manifesto, which will play a key part in their voting intentions.

Among the key demands of the manifesto is a decoupling of the VAT rate between food and accommodation in recognition of the vastly different business models of smaller pubs and restaurants versus larger hotels. This policy proposal arrives on the back of comments made by Taoiseach Simon Harris in the Dáil following the rally last Tuesday stating that he has asked Minister for Enterprise Peter Burke to “review our VAT laws” in light of the challenges facing the hospitality sector.

The RAI has said that a separation of VAT on food and accommodation should result in a reduced VAT rate for food services while keeping the accommodation rate at its current 13.5%. The Association is also calling for a reduction of the standard VAT rate from 23% to 21%, as well as cuts to excise duty on alcohol, which remains the second highest in the EU.

In addition to financial reforms, the RAI has called for greater support to be provided for hospitality apprenticeships and for the appointment of SME representation to key economic bodies like the Labour Employer Economic Forum and the Low Pay Commission.

The representative body which has over 3,000 members has also called for the appointment of a dedicated Minister for Tourism and Hospitality within the Department of Enterprise in the next Government, and the development of a five-year strategy for Food and Drink Tourism in Ireland.

Adrian Cummins, CEO of the Restaurants Association of Ireland, said:

“For too long, the hospitality industry has lacked a champion in Government. We’ve been forced to lobby multiple departments without anyone to truly fight our corner. The Department of Tourism, for example, has now washed its hands of any direct responsibility for restaurants and pubs, despite 37% of tourist spending in Ireland going on food and drink. Our industry deserves a dedicated Minister.

“Budget 2025 was the best opportunity for the Government to stop the closures and save our industry. The next best time is now. Without urgent and meaningful intervention, over 1,000 businesses will close their doors over the next 12 months. The RAI has requested meetings with Taoiseach Simon Harris, Tánaiste Micheál Martin, Minister for Finance Jack Chambers and Minister for Enterprise Peter Burke so that we can work together collaboratively towards a more sustainable future for the industry. 

“Without the urgent introduction of a suite of immediate and proactive measures, widespread hospitality closures will be inevitable this winter. 

“Our pre-budget focus was on restoring the 9% VAT rate on food, which would have been worth €37,000 to the average restaurant. But now we are asking the Government to meet with us with all options on the table. We are open to any solution or combination of policies that will secure a viable future for the over 20,000 businesses and 270,000 livelihoods supported by our industry.”

ENDS —

Notes to the editor

1. With 3,000 members, the Restaurants Association of Ireland is the representative body for restaurants, cafés, gastropubs, and other food-led businesses in Ireland.
2. A copy of the RAI’s manifesto is attached.
3. For further information about the RAI, visit www.rai.ie.

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Adam Hallissey –