Economic Loss Due To Restaurants' Closure At €288 Million

Economic Loss Due to Restaurants’ Closure at staggering €288 Million!!

A recent report commissioned by the Restaurants Association of Ireland (RAI) has revealed a grim reality for the Irish economy. The closure of over 200 restaurants, cafes, and food-led businesses in 2024 alone could result in an annual loss of up to €288 million, according to economist Jim Power.

(Also read Coral Reefs are Undergoing the Fourth Global Bleaching Event, Says Global Monitoring Body.)

Each closure not only spells the end for an establishment but also leads to a cascade of economic repercussions. On average, 22 jobs are lost per closure, amounting to €576,554 in lost wages and €115,310 in foregone payroll taxes. Furthermore, the state loses out on €105,000 in VAT receipts, €11,874 in commercial rates, and €4,583 in water charges annually.

Economic Loss Due to Restaurants’ Closure puts Heavy Toll on Irish Economy

Adrian Cummins, CEO of the RAI, emphasised the detrimental impact of these closures on local economies, particularly in rural areas where job opportunities may be scarce. He highlighted the misconception that closed businesses will swiftly be replaced, stressing the challenges of finding alternative employment for displaced workers.

The RAI advocates for a return to the 9% VAT rate exclusively for food-related businesses, arguing that it’s imperative for the sector’s survival. Failure to act promptly, warns economist Jim Power, could exacerbate losses for the state and deprive communities of beloved social hubs.