by Louise Doyle
HOSPITALITY workers in Donegal joined hundreds of others at a rally in Dublin on Tuesday to emphatically call for fairness and support to help their industry struggling to survive under rising costs.
The ‘Day of Action’ protest saw hospitality workers march to the Dáil to warn that their industry is now in crisis.
Over 700 restaurants, cafés and food businesses have been forced to close their doors since hospitality VAT was returned to 13.5 per cent in September 2023.
The industry has been calling for the rate to be returned to nine per cent to save struggling businesses, however, the Government opted against making the change in Budget 25.
Sharkey’s Bar in Annagry is co-owned by brothers Michael and Joe.
It’s a fourth generation family-run bar but there are fears for the survival of such family-run businesses in the future.
Speaking to the Donegal News, Michael Sharkey said: “Like a lot of pubs, we are a family-run pub. One of the things that came up strongly at the protest was that if a bar is to be handed down to the next generation in a family, what is there for them?
“The industry is not getting any help from the government to help with all the rising costs.
“Some businesses stay closed on a Monday or Tuesday because it is cheaper for them to do that because costs have gone up and footfall has dropped. There are parts of Donegal and other places in this country that are on their knees.
“The hospitality industry in this county is huge, from the small coffee shop to the big hotel. If places start to close, where else are people going to go for jobs? When the VAT rate was nine per cent, businesses were taking in more revenue but the government can’t seem to understand that.”
Mr Sharkey said he believed excise duty needs to be reduced in order to help the industry.
“The government would need to reduce excise on products. It is too high. Not everyone can access the small grants. Unless you have the rates and such paid up in advance then you can’t apply for it.
“We just want a bit of fairness. Some places are being bought up by multinational companies that are getting the big breaks that the small companies are not getting.
“We’re still open seven days a week. The older we’re getting, the more hours we seem to be doing,” said Mr Sharkey.
Megan Slevin and her husband Aaron are the co owners of Biddy O’Barnes. She said pressures within hospitality have been brewing since the Covid-19 pandemic.
“We were closed during that time on and off for two years. Small supports were given which helped to keep the pulse going, but during that time the hospitality lost lots of people, including chefs, front of house staff and it has been very difficult in the wake of Covid.
“The VAT rate went up from nine per cent to 13.5 per cent. The cost of energy and ingredients in our food has also risen. Successful restaurants are being forced to close their doors because of the pressures.”
Ms Slevin said winter presents the challenge of maintaining staff and sustaining footfall.
“It was positive to see the large turnout and there was unity in our voices, but I don’t think it is the end of our fight.
“We need a Minister for Hospitality. It is a huge industry in this country, yet has no minister. There is a real disconnect from government.
The job losses have a real knock-on effect with many others employed such as suppliers and those who come to test alarms. If we close, we are also one less customer for them.”
Meanwhile, Donegal Deputy Thomas Pringle said the hospitality industry is “drowning”.
The Independent TD is supporting the call for a nine per cent VAT rate on food sales, citing cost-of-living pressures on restaurants and cafés in Donegal and across the country.
Addressing the Dáil yesterday on the Independent Motion re VAT Rate for the Hospitality Sector, Deputy Pringle said: “Restaurants and cafés are feeling the pressure. They are struggling to continue trading with the rising cost of electricity, gas, food and supplies and they are forced to face the full impact of rising prices alone.
My constituency of Donegal has seen many closures over the last few years, and it is truly devastating to see.
“The industry is drowning, Minister, and your government needs to recognise this and do something about it before it’s too late.
“The food sector is severely struggling in the cities too. I have talked to business owners in Letterkenny who are also struggling to make ends meet and dread the ever-increasing bills.”
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