Two pubs a week now closing in Ireland, one in three in Cork and Limerick gone since 2005

A new report shows a quarter of Irish pubs have shut since 2005, with rural areas worst affected

Some 50 pub premises are currently for sale across Cork city and county with one estate agent estimating that at least 10 would not be viable as a business going forward.

One in four Irish pubs have closed over the past two decades, or two premises a week now closing permanently, with the problem most acute across rural Ireland.

A stark new report from the drinks industry found that 2,119 pubs closed between 2005 and last year, with up to 1,000 more to shut over the next decade as the sector very faces a difficult environment of higher costs, economic uncertainty and changing consumer trends.

The report compiled by Drinks Industry Group Ireland (DIGI) found that rural Ireland has been worst affected, with one in every three pubs across Cork, Limerick and Offaly closing down since 2005.

Using data from the register of alcohol licences compiled and analysed by the Vintners Federation of Ireland, the report found that the 1,221 pubs in Cork in 2005 has fallen to 822 pubs last year.

The drop in Limerick was more acute, falling from 478 pubs in 2005 to just 300 last year.

Dublin, which had 786 pubs in 2005 saw the smallest national decline dropping to 773 last year highlighting the sharper drop in more rural counties.

Last month, the Irish Examiner reported that 50 pub premises are currently for sale across Cork city and county with one estate agent estimating that at least 10 would not be viable as a business going forward.

“For countless villages and rural areas, the pub is the primary hub for social gathering, the place where neighbours connect and local events are hosted,” DIGI CEO Donal O’Keeffe said.

The loss of these businesses, many of them family-run for generations, creates a vacuum that damages the social fabric of communities and deepens the risk of rural isolation.

“In counties like Limerick, which has lost well over a third of its pubs, and seven other counties where over 30% of premises have vanished, this trend has reshaped communities and promoted social disconnection."

The report’s author, economist Dr Anthony Foley, said the Government could improve commercial viability overnight by cutting excise by 10%.

“With Irish consumption of alcohol having fallen to average EU levels, and likely to continue dropping, it is no longer justifiable that pubs should be faced with the second-highest excise rates in Europe.

"This is on top of a hefty 23% Vat rate. The time for the Government to act is now before it is too late.”

Excise cut would provide immediate relief

The report said a 10% cut in excise on alcohol in Budget 2026 would provide immediate relief to businesses and signal a commitment to the viability of the sector, which has seen a quarter of pubs close their doors over the past two decades.

The report sets out a range of reasons behind pub closures. Some of these are interlinked, such as low commercial returns, which discourage younger family members from succeeding older publicans on retirement or death. 

"These determinants include low levels of business volume, weak commercial sustainability, non-replacement of pub operators on retirement or death, regulatory changes such as tighter drink driving laws and enforcement allied with weak or non-existent public transport, population change and distribution, changes in consumer patterns and expectations, alcohol market changes, more attractive alternative economic activities and income opportunities and asset prices for pub licences which are used to facilitate the opening of new off-licences in supermarkets, convenience stores, discounters and petrol stations," the report states.

The DIGI said supporting the Irish pub is also about cultural and social considerations they are "iconic symbols of Irish culture, drawing thousands of tourists each year and greatly boosting the tourism and hospitality sector". It said:

Allowing their continuing decline would mean losing one of Ireland’s most valuable assets.

The warnings from the DIGI are backed up by data elsewhere. The changing consumer trends are reflected in recent data from the CSO's retail sales index. 

Bars saw a 6.8% drop in sales volumes over the past year, the highest annual decline of any industry sector.

The DIGI report puts excise in the crosshairs for the Government as it formulates the next budget. The report notes that the State takes an average of €1.67 from a pint of stout and €17.01 from a bottle of off-licence whiskey.

"In Ireland, a 70cl bottle of Irish whiskey sold at an off-licence is levied with an additional excise duty of almost €12," Mr Foley said. "In an Italian off-licence, that same bottle of Irish whiskey has an excise duty of just €2.90."

"For a French visitor to Ireland, a standard glass of wine which would attract an excise duty in France of just 1 cent is levied with an additional 80 cents excise duty here, while 15 EU countries do not charge any excise tax on wine at all."

"A reduction in the excise rate, as proposed by DIGI, would have the effect of immediately boosting the viability of the Irish pub, particularly in more remote, rural areas where employers are often hard to find," he said.