Donegal has 122 fewer pubs than in 2005

A new report from the Drinks Industry Group of Ireland (DIGI) shows that Donegal has 122 fewer pubs than in 2005.

The 20-year decline in the number of pubs in the county is 26.9%. Nationwide, 2,054 pubs have closed down within the timeframe, which means there’s an average of 114 pubs closing annually, with the trend rising to 144 in the later 2019-2023 period.

Counties Limerick (35.6%), Roscommon (31.9%), Cork (31.4%), Tipperary (31.2%) and Laois (30.6%), have seen the highest declines, each exceeding the national closure average of 24%.

Seven counties experienced a decline of 30% or more in their number of pubs.

A recent survey of 600 pubs and restaurants found that almost one in four have seen their costs rise by 20-30% in the last two years, while 15% have seen their costs rise by over 40%.

All 26 counties have experienced a decline in pub numbers since 2005. The lowest number of pub closures over the period came in Dublin which has seen a rise of 3% in pub numbers. Other counties with lower closures rates include Meath (6.7%), (Wicklow (8.9%), Kildare (12%) and Carlow (14.2%).

This latest analysis comes on top of recently published data by the Restaurants Association of Ireland which found that 283 food-led businesses such as restaurants, cafés and gastropubs closed in the last six months of 2023, with a further 212 such businesses shuttered so far this year.

In addition to this, the survey found that if government support, such as a cut in the excise rate was provided, it would allow the industry to sustain and grow. 23% of business owners would refurbish their business, 18% said they would hire more staff and 13% said they would invest in new offerings or services such as food or accommodation. These figures demonstrate the untapped potential of the industry.

Commenting, the author of the report, Professor Tony Foley said: “This analysis verifies the consistent trend we have been seeing with pub numbers in every part of the country. There is clearly a variation in closures between counties which broadly sees rural areas adversely impacted.

"The continuing decline is taking place against a backdrop of societal change and cost of business strains. Consumption of alcohol has notably decreased, how we socialise is changing, the types of drinks we consume are changing, particularly the rise of low-alcohol and alcohol-free products.

“We are also seeing that with many pubs, which are often small, family-run businesses, sustaining business is becoming harder and harder.

“Fostering commercial sustainability is crucial to safeguarding rural Irish pubs. Ireland’s drinks and hospitality businesses are operating in an environment where the costs of doing business are ever-rising. Energy, insurance, and other cost line items continue to rise, many by double digits.

“The sector is also faced with one of the most regressive excise tax environments for small and medium enterprises in Europe."