Cork shop owners fear hike in commercial rates 'will cause more places to go out of business'

Traders in Cork City spoke about their fears of a commercial rates hike at a time when cost-of-living pressures are already impacting consumer spending power

Jeff Safar, owner of KOTO Asian Kitchen & Bar, Carey’s Lane Cork: 'Everything is on the up, and nothing is going down'. Picture: Larry Cummins

As Cork City businesses reflect on a bumper weekend of trade during the Jazz Festival, their attention is now turning to a proposed 7% increase in commercial rates that many feel could lead to shop closures.

The Irish Examiner spoke to traders about their fears of a commercial rates hike at a time when cost-of-living pressures are already impacting consumer spending power. Cork City Council is currently considering the 7% increase, which will be officially decided next month.

Jeff Safar, the owner of Koto restaurant on Carey’s Lane, said rising business costs and fragile consumer confidence made for an uncertain environment for traders. 

“Supermarket prices and electricity bills, everything is on the up, and nothing is going down — that’s reflected in the prices of our suppliers, and our customers have less disposable income," he said.

"We’re a small, family-run business and every euro generated here stays in Cork.” When the VAT for food businesses was reduced, it was a "big help” as traders tried to absorb the 5% council rates increase last year.

“But another 7% is a lot on top of that, especially when the city needs a bit of love," Jeff said, as he reflected on the potential impact on his own restaurant prices.

You can’t keep putting the price of a dish up.

Over in the much-loved Pro Musica shop, owner Eileen Madden has seen her 46th Guinness Cork Jazz Festival. 

"I am here since 1980, and year on year, especially since covid, the footfall in the city has fallen.” 

In terms of cost, “everything is going through the ceiling, and it’s hard just to maintain the status quo,” she said.

Ms Madden urged the council to invest in the city to encourage more shoppers into its retail heart.

“They should be incentivising people to shop in town, especially because you walk around the city and it’s all vape shops, nail shops, and coffee shops.” 

She fears an increase in commercial rates “will cause more places to go out of business".

Eileen Madden at ProMusica, Oliver Plunkett Street, Cork. 'They should be incentivising people to shop in town.' Picture: Larry Cummins

Dermot O’Sullivan, owner of the Greenwich café on Caroline St, said: “Minimum wage going up has a knock-on effect on the price of ingredients.

“Like every other business, we are trying to absorb costs and meet those challenges.

“It would be unwise at the moment to put the rates up — I don’t think the timing is good right now.” 

However, he added: “If the council decides to increase rates, we need to look at where that’s going to go, how it’s going to improve the city.” 

He said City Hall is doing great work in general: “Sales are up because people are coming into the city, and simple things like the new benches on Patrick Street make the city more inviting and invite new retailers too.”

Sheena McCarthy of Sheena’s boutique has been trading for over 50 years, including 35 years in Cork City.

A further rise in rates would be difficult because, she says “it’s not in isolation". 

Sheena McCarthy of Sheena’s boutique. 'If cost increases continue, people will be forced out of business.' Picture: Larry Cummins

"We’ve seen massive increases in costs, with sick pay, PRSI, shipping, fabrics, electricity — it’s all gone up.

“Smaller businesses like us are finding it difficult. We work really hard and have to absorb a lot.

“Cork City is a beautiful city, but we need more small businesses, and if cost increases continue, people will be forced out of business."

The jazz weekend was a big boost, “but that’s one weekend”, said Ms McCarthy, who appealed for more opportunities to work with City Hall on initiatives, such as enhanced parking or an improved Christmas market.