A new report from the Drinks Industry Group of Ireland (DIGI) shows a continuing decline in the number of pubs in Ireland, with 2,054 fewer pubs today than there were in 2005.
The report, including economic analysis from Economist and Associate Professor Emeritus at DCU Anthony Foley, shows that an average of 114 pubs have closed annually over the past 18 years. The number of closures has risen in the last five years to 144 annual closures.
Titled “Support Growth: A Sustainable Future for Ireland’s Drinks and Hospitality Sector," the report includes a county-by-county breakdown of the number of pubs shuttered.
Counties Limerick (35.6%), Roscommon (31.9%), Cork (31.4%), Tipperary (31.2%), and Laois (30.6%) have seen the highest declines, each exceeding the national closure average of 24%.
Seven counties experienced a decline of 30% or more in their number of pubs.
All 26 counties in the Republic of Ireland have experienced a decline in pub numbers since 2005. The lowest number of pub closures over the period came in Dublin which has seen a decline of 3% in pub numbers. Other counties with lower closures rates include Meath (6.7%), (Wicklow (8.9%), Kildare (12%), and Carlow (14.2%)
Decline in the number of pubs in Ireland since 2005. (DIGI)
This latest analysis comes on top of recently published data by the Restaurants Association of Ireland which found that 283 food-led businesses such as restaurants, cafés and gastropubs closed in the last six months of 2023, with a further 212 such businesses shuttered so far this year.
A recent survey of almost 600 pubs and restaurants, conducted as part of today’s report found that almost one in four had seen their business costs increase by 20-30% in the last two years. An additional 15% found that their business costs had increased by over 40% in the last two years.
In addition to this, the survey found that if government support, such as a cut in the excise rate was provided, it would allow the industry to sustain and grow. 23% of business owners would refurbish their business, 18% said they would hire more staff and 13% said they would invest in new offerings or services such as food or accommodation. These figures demonstrate the untapped potential of the industry.
Professor Tony Foley, author of the new report, commented: “This analysis verifies the consistent trend we have been seeing with pub numbers in every part of the country.
"There is clearly a variation on closures between counties which broadly sees rural areas adversely impacted.
"The continuing decline is taking place against a backdrop of societal change and cost of business strains. Consumption of alcohol has notably decreased, how we socialise is changing, the types of drinks we consume are changing, particularly the rise of low-alcohol and alcohol-free products.
“We are also seeing that with many pubs, which are often small, family-run businesses, sustaining business is becoming harder and harder. Fostering commercial sustainability is crucial to safeguarding rural Irish pubs. Ireland’s drinks and hospitality businesses are operating in an environment where the costs of doing business are ever-rising. Energy, insurance, and other cost line items continue to rise, many by double digits.
"The sector is also faced with one of the most regressive excise tax environments for small and medium enterprises in Europe."
Kathryn D’Arcy, DIGI Chair and Communications and Corporate Affairs Director at Irish Distillers, said: “The decline of over 2,000 pubs since 2005 reflects the real change and challenges this sector is dealing with.
"Pubs, restaurants, and hotels employ over 207,000 people which is 8.3% of all employees in the country. These people and the businesses they work for are part of the economic and social fabric of their communities.
"Running such businesses in a climate where the cost of doing business is squeezing more and more is difficult.
"DIGI’s research shows that when government responds, particularly on heavy cost items like taxation, the sector responds. Punitive taxes like excise duty which are in some instances 12 times higher here than in other countries, are one such cost item.
‘’Ireland’s excise on spirits and beer is the third highest in Europe, while our excise on wine is the second highest in Europe. We have some of the highest excise duties in the world and the second highest in Europe overall.
“These businesses are integral to Ireland’s tourism offering. We need to take that consideration into account too.
"We are calling on Government to deliver a reduction in Ireland’s extremely high excise duties which would make an immediate, positive difference to the hundreds of small businesses in our sector struggling to stay open. We have costed, considered plans on how to do this and welcome engaging with government and others on our proposals”.
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