Burnt Pizza, Cork's latest restaurant closure, blamed on increase in Vat rate

Damien Twohig said up to 10 jobs had been lost following his decision to close Burnt Pizza on Princes Street — the second restaurant closure on the street in recent weeks. Picture: Larry Cummins

A food entrepreneur who has closed his restaurant on Cork’s eat-on-the-street dining destination has urged the Government to reduce the Vat rate for food-led businesses or face more closures.

Damien Twohig said up to 10 jobs had been lost following his decision to close Burnt Pizza on Princes Street — the second restaurant closure on the street in recent weeks.

He said the Government’s decision last year to restore the Vat rate eroded its already fine margins.

“Burnt was like my baby,” he said.

“I opened it on my birthday in December 2018. It was all about quality, I wanted it to be authentic.

“We specialised in high-quality Neapolitan pizzas with the best of ingredients.

“I went to Naples to get a second-generation oven, and we went to Naples to get our chefs.

“We came through covid, and then the war in Ukraine affected the price of our flour — we were buying it from Italy but the wheat came from Ukraine — and then energy costs went through the roof.

“The Government can’t do much about covid and the war.

“But then the Government increased the minimum wage, that had a knock-on effect on other staff who looked for an increase, then they changed holiday and pension entitlements, and then they restored the Vat rates.

I don’t know who the Einstein is that’s making these decisions and thinks that it’s not going to have an effect on an industry that is already under pressure.

He also said turnover was down 18% in the first six weeks of this year compared to the same period last year, but the restoration of the Vat rate was the tipping point.

He said the Government must reduce it for food-led businesses or face more closures of indigenous Irish-owned food businesses.

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Mr Twohig, his wife, Irene, and son Paul, are successful food entrepreneurs, who run the Soma Coffee company and the city’s boutique food market, The Black Market. They also run two gyms. These businesses continue to operate as normal. 

The Burnt outlet in the Black Market will close, but the market will continue to have a pizza offering.

Burnt's neighbour, Nash 19, which closed last month, was one of the highest profile casualties of what has been a cascade of food business closures since the start of the year.

Other high-profile closures in Cork City since January alone include Pigalle, Tung Sing’s 60-year-old Patrick Street restaurant, White Rabbit Bar & BBQ and Electric. Greene's on MacCurtain Street has also announced a reinvention of its offering.