The crippling cost of living is putting an extra squeeze on pubs with some facing closure.
That was the warning issued yesterday by the Vintners’ Federation of Ireland following the release of a new consumer pulse survey.
It revealed more than four-in-10 Irish adults are planning fewer visits to pubs for the remainder of this year due to cost of living concerns.
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That prompted VFI chief Paul Clancy to demand “urgent and substantive energy support in the Budget”. He said a drop-off in trade will heap extra pressure on publicans – but insisted they “cannot pass on increases to customers [who are] already under financial strain”.
He said: “The survey findings paint a bleak future for the pubs, their staff and the communities where they often provide a vital social hub.
“With 42% of pub-goers expected to curtail visits due to cost of living pressures, it is vital Finance Minister Paschal Donohoe provides urgent and substantive energy supports to the pub trade in Budget 2023. Pubs cannot pass on increases to customers already under financial strain and colossal energy costs are going to force pubs to close, or reduce their winter opening times.
“Reduced footfall, coupled with an unprecedented rise in energy costs after 22 months of Covid lockdown closures and restrictions, means we are almost certainly looking at the permanent closure of many more pubs.”
The Curren Goodden Associates Cost of Living Consumer Pulse Survey was carried out last month across Ireland and the UK and quizzed “1,000 adults who typically visit a hospitality venue every six months”.
The study comes on the back of sky-rocketing fuel bills for Ireland’s nearly 7,000 energy-reliant pubs – many still counting the cost of the Covid-19 pandemic.
It found 42% of Irish adults plan to reduce trips to the pub and other hospitality venues between now and New Year’s Eve.
This winter’s feared energy crisis had already prompted warnings from the VFI which represents 4,000 publicans across the country – about pub closures before the poll’s results were published.
The warnings follow last month’s figures from the Drinks Industry Group of Ireland which showed Ireland has lost more than 1,800 pubs since 2005, with 349 closing their doors during the Covid-19 pandemic.
Thousands of jobs were lost and every county was hit hard but Laois, Offaly and Roscommon were affected hardest.
It revealed there were 8,617 pubs in 2005, but that had plummeted to 6,788 by the end of last year.
A VFI spokesperson added yesterday: “While there has been a 21% decline in the number of pubs since 2005, according to DIGI, research by the University of York and Newcastle Business School highlighted the
significant contribution of the Irish pub to the economy with 50,000 employed and €60.7million generated in wages.
“Across Ireland and the United Kingdom, the CGA survey found 93% of consumers are expecting to spend more on household expenses.
“But the survey also found despite pressures on disposable income, the hospitality industry remains a vital part of consumers’ lives.
“Some 69% agreed that eating or drinking out is the treat they most look forward to, with 80% stating satisfaction with the quality of the product and service on offer.”
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