Irish food businesses in 'survival mode' as industry profit margins fall below 1%, warns report 

Report comes as Government strategy group rejects calls for a reduced VAT rate for the hospitality sector

Adrian Cummins, CEO of The Restaurants Association of Ireland. Photo: Gareth Chaney/Collins

Irish food-led businesses have been put into 'survival mode' with a new report warning of razor-thin profit margins as the industry grapples with rising operational costs and government pressure. 

The report by accounting software firm, Outmin and the Restaurants Association of Ireland (RAI) found that average net profit margins among food-led hospitality businesses reached just 0.8% in the first three months of 2024, after suffering a net loss of 1.6% in the final months of 2023.