1 in 3 restaurants facing closure in next 6 months
The association has found that more than 80% of restaurants in Ireland are running at a loss, putting 21,000 jobs in the sector at risk and resulting in a potential €700 million annual loss in tax revenue.
RAI chief executive, Adrian Cummins, said the current situation confirmed the association’s worst fears since the recession began.
The Irish restaurant industry employs 64,000 – one in four tourism jobs – and contributes €2 billion to the economy each year.
The RAI plan calls for a reduction in the national minimum wage and local authority charges, the removal of air travel tax and free public transport for people aged over 65 visiting Ireland. It also calls for the introduction of capital allowances for investment in the restaurant sector and a reduction in excise duty.
Mr Cummins said that restaurateurs had adapted to the downturn by reducing costs and menu prices.
“Urgent action is now needed because the current business environment is unsustainable,” he warned.
Last month, renowned food writer Georgina Campbell described 2009 as the toughest-ever year for the Irish hospitality sector.
“Many fine establishments have cut costs to the bone and their businesses are now literally hanging by a thread,” said Ms Campbell when she launched the 2010 Georgina Campbell Awards.
She said the Government’s failure to reduce costs outside the control of businesses, such as VAT and rates, meant prices were reduced to an unsustainable level.
