Restaurants group launches election manifesto to fix sector's 'broken financial model' 

The RAI is calling for a decoupling of the VAT rate between food and accommodation in recognition of what the group has called "vastly different" business models

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

The Restaurants Association of Ireland (RAI) has launched a 10-point manifesto in advance of an imminent general election to fix what it describes as the “broken financial model” facing Ireland’s hospitality industry.

The RAI has called on all political parties to 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 hospitality workers and small business owners gathered to highlight the sector’s deepening financial struggles.

Among the key demands of the RAI’s manifesto is a decoupling of the VAT rate between food and accommodation in recognition of what the group has called "vastly different" business models of smaller pubs and restaurants versus larger hotels. 

This policy proposal follows Taoiseach Simon Harris’ comments in the Dáil last Tuesday in reaction to the rally 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.

It is also urging 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.

"For too long, the hospitality industry has lacked a champion in Government," said RAI chief executive, Adrian Cummins.

"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."