‘There will be a tsunami of closure’, Donegal Town restaurateur warns

A Donegal Town chef and restaurant owner says that the hospitality sector could be obliterated unless action is taken over rising costs.

Jo Daly of Quay West was among the hundreds of people from the sector who took part in a Day Of Action on Tuesday in Dublin.

People from hospitality, tourism, retail, childcare and other small business owners took part in a march from Merrion Square to Leinster House.

“People are trying to survive, but just can’t crunch the numbers,” Ms Daly told Donegal Live.

“The shivers went through me at some of the stories. One man is a seventh generation publican and doesn’t know if he’ll be able to keep going.

“It’s scary stuff and the rate at which it’s happening is the scariest thing. Every time you look at social media now there is someone else closing.

“The government won’t do much or anything with the VAT, but maybe they could slow down some of these other directives. So much has been brought in together.”

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The event was organised by the Restaurants Association of Ireland (RAI), the Vintners’ Federation of Ireland (VFI) and other small business representative groups, to highlight the pressures of mounting costs and an absence of government aid.

“We are 22 years in business and we got through the recession by skin of our teeth,” Ms Daly said. “We are heading that way again because there is very little that we can control.

“We can’t control the price of food that comes in the door, we can’t control the mortgage and the energy, but there are things that the government can control: Bank Holidays, sick pay, increases in VAT. The last VAT increase was an awful kick.

“Give it a couple of years and all that we have will be the likes of Supermacs, Costas and Starbucks. That is a reality because these multinationals have the buying power and they can be competitive price wise.

“There will be a tsunami of closures. The industry will be obliterated. What are we going to offer tourists in two or three years time?”

Ms Daly points to the price of a case of Coca Cola, which is now €15.50 “and rising” having been €9 only a couple of years ago.

“We are taking the hit all the time,” she says.

“I I knew then what I know now, this wouldn’t be a restaurant. The industry is just too volatile. Since Covid, there has been a huge hole left in manpower that we are still recovering from.

“A huge problem too is the lack of joined up thinking. On arm of the government is screwing small businesses and yet we are helping the small businesses.”