The big breakfast scramble

THE hospitality industry is going through a particularly tough time. The closure recently of several high profile restaurants, including the Michelin-starred Commons restaurant in Dublin, has sent nervous jitters through the industry. The public perception is that restaurants, in general, are making a fortune — the reality, however, is very different.

The downturn in the economy has coincided with a significant rise in costs across the board, coupled with a growing perception that Irish restaurants are more expensive than their European counterparts. Henry O'Neill, chief executive of the Restaurant Association of Ireland, points out the factors contributing to the nervousness. He stresses that the cost of all of the following have increased significantly raw materials, labour, insurance, health and safety training and systems, waste disposal.

Customers are eating out less, spending significantly less and actively seeking value for money. The days of boozy, luxurious business lunches are over; customers who are spending €60 for dinner are becoming increasingly militant when they are asked to vacate their table to facilitate a second sitting. Yet the reality is that for many restaurants battling with soaring costs, it has become an economic imperative to turn the tables. There is no easy solution but flexibility and creativity would seem to be the key.