Restaurant owner warns of at least €4 on main courses as soaring prices hit industry

Mick Hughes, second right, with Justice Minister Helen McEntee and some of his staff at The Stockhouse restaurant in Trim, Co Meath.

A restaurant owner has warned that diners could face at least €4 extra on a main course as biting price increases hit businesses "left, right and centre like a pin cushion".

Mick Hughes from The Stockhouse restaurant in Trim, Co Meath, estimates his supply and wage costs have increased by an average of 26% — and this is before the spikes in energy from May 1.

Mr Hughes said the industry was "running on borrowed time".

"I understand that inflation is likely to be rated at 7% today but you can triple that in my case," he said.

"A 20-litre drum of cooking oil has risen from €22 to €32, which is a 45% increase and we buy up to four of them each week.

"Catering-sized packs of chicken has shot up 25% from €27.95 to €36.50 and chips are up 30%, from 12.50 to 16.50. We have been told that we won't be able to get the chunky chips soon because the skin is being used to feed pigs due to a shortage of meal." 

"Flour is now €18.50 for a catering-sized bag which we were paying €12.50 for, and crab meat is almost €30, up from €24.50. And all these prices continue to spiral on a daily basis.

"Our menus will no doubt have to change too as various food sources dwindle.

"We can't future-proof ourselves by buying in bulk and freezing. Our reputation was built on food being fresh.

Services have risen 10% and we put our wages up by up to 18% in an effort to keep hold of the staff we have, because many of them left the industry during the pandemic.

"We used to be open seven days a week and we scaled this back to five days because of staff shortages. Chefs discovered they could have a life and more money by working in other industries."

'Perfect storm'

The situation has been turned into a "perfect storm" as various Covid-19 supports come to a close, he added.

"The hospitality business scheme ends this month as does the tax warehousing, which means businesses will have to pay back the revenue owed or give it back in increments. Covid-19, Brexit and the war in Ukraine, it's unprecedented.

"The levies on disposable cups and the sick pay are all great ideas but are coming at the wrong time and will be the nails in the coffin for a lot of places.

"The reliefs the Government afforded us in the pandemic were a lifeline for most but now it looks as if they will have been wasted.

"There is no escape from these hikes and they are not sustainable although we will maintain a positive outlook and fight the fight.

We have been trying to take the hit as much as possible but have had to pass on some of the costs to customers so main courses have increased in price by €2 and possibly will rise again by at least another €2. However, I can't see any diner paying any higher.

"That main course will cost a couple an extra €8 on top of extra costs for a night out and their own price hikes on shopping and energy bills.

"People are going to either stop going out or eat out much less.

"We are like a pin cushion in a perfect storm because we are being hit left right and centre."