One in five pubs has cut workforce in past 12 months, says VFI

Oireachtas Joint Committee on Enterprise, Tourism, and Employment will discuss competitiveness and the cost of doing business in Ireland

VFI President Michael O'Donovan and VFI chief executive Pat Crotty will address the Oireachtas Joint Committee on Enterprise, Tourism and Employment on Wednesday. Picture: Conor McCabe Photography

One in five Irish pubs has cut back its workforce in the past years, as rising costs continue to threaten rural pubs, the Vintners’ Federation of Ireland (VFI) has warned. 

VFI, which represents 3,500 publicans nationwide, said cost pressures continue to threaten the viability of many rural pubs. VFI chief executive Pat Crotty and VFI president and proprietor of Cork city's The Castle Inn will address the Oireachtas Joint Committee on Enterprise, Tourism and Employment on Wednesday as part of a meeting on competitiveness and the cost of doing business in Ireland ahead of Budget 2027. 

The Oireachtas committee will also hear from Donal O'Keeffe, chief executive of the Licensed Vintners' Association, which represents many publicans in Dublin, and from the Restaurants Association of Ireland, and the Irish Road Haulage Association.

VFI said new survey findings show 22% of pubs reported a decrease in staffing levels over the past 12 months.  VFI said publicans have experienced significant increases in key operating costs over the past five years, including electricity costs rising by 70%, wages by 40%, and water tariffs increasing by 30% in 2024 followed by a further 10% increase in 2025.

“These figures are clear evidence of the pressure pubs are under. Publicans are being forced to reduce staffing levels simply to keep their doors open. For many smaller and rural pubs, the current cost environment has become completely unsustainable and poses an existential threat to future viability," said Mr Crotty.

Mr Crotty said over 2,200 pubs have closed across Ireland since 2005, representing a decline of over 25% in the total number of licensed pubs. The average rate of closure has accelerated in recent years to 128 pubs per annum.

According to a VFI survey, 65% of publicans said rising business costs are having an unsustainable impact on their operations, while 41% reported that trading conditions are worse than they were 12 months ago. Confidence in the future has also weakened with almost 42% expressing a lack of confidence in the future sustainability of their business.

As part of its Budget 2027 submission, the VFI is calling on Government to introduce a new On-Trade Sustainability Scheme to protect smaller and rural pubs.