Pat Crotty: Critical time for pubs as costs of staying open surge

I understand that customers hear about suppliers increasing the cost of a pint by 6 cent but are left scratching their heads when that translates to, for instance, 20 cent at the till

Publicans must provide for staff wage increases, enhanced statutory sick pay entitlements, along with every other cost increase that has been absorbed for the last year and others that are coming down the track. Then add Vat  and hope for a small margin of profit. There is a whole host of costs that must be covered to get there. Picture: iStock

As the chief executive of the Vintners Federation of Ireland, I represent a sector that is both a cornerstone of the Irish economy and a vital part of our national identity. Irish pubs are more than just places to enjoy a drink, they are the social fabric of our communities, a tourist attraction and a living tradition.

However, as we navigate through the ever-changing economic landscape, the costs of doing business are escalating, placing our pubs at significant risk. These cost increases are usually just market forces at work but, since last September when the hospitality Vat rate increased to 13.5%, Government interventions have become the single biggest pressure on business viability.