Ireland 'Most Costly' Place To Run Restaurant

The Restaurants Association of Ireland (RAI) has welcomed a new report, which says Ireland is the most costly place in Europe to run a restaurant.

The association was responding to the publishing of the Failte Ireland "Cost of Food Preparation & Service in the Restaurant Sector" report outlining the true cost of running a Restaurant business in Ireland.

A spokesman for the association said that the next six months were critical for the restaurant sector and banks must free up credit and increase overdraft facilities for restaurateurs.

Adrian Cummins, 
Chief Executive Officer of the Restaurant Association of Ireland, said: "The Failte Ireland report proves from its research what we have being saying for months.

"Our members are struggling to deal with increasing Local Authority Charges and need to obtain adequate bank credit to survive through the recession.

"The high regulated wage rates forced on the sector are simply unsustainable."

Mr Cadden, reminded government of the importance of the sector, which employs 64,000 people and contributes €2billion to the Irish economy.

"As a major contributor to the exchequer and a critical cog in the Irish tourism industry, we should expect to trade under the same conditions, as are enjoyed by our competitors and fellow restaurateurs throughout the European Union. However, this is not the case.

"We are burdened with oppressive regulation and weighed down with a multitude of costs and charges."

Fáilte Ireland today published research into the costs associated with food preparation in the hotel and restaurant sector in Ireland.

The study concluded that there was no evidence to support a view that excessive profits were being generated in the restaurant sector. The cost of a restaurant meal in Ireland is driven by input costs that are higher than similar input costs in other countries.

The RAI called on the Government to intervene as a matter of urgency to protect the long-term viability of Ireland’s tourist and restaurant industry, which it maintains is in a critical situation.

Mr Cummins added: "Unless urgent action is taken to address immediate issues in the restaurant sector, the emerging situation will have immediate and devastating implications for otherwise viable restaurants."

Since the report was complied the RAI said it had seen labour costs soar to between 38% and 40% of turnover with revenue falling by between 25% and 30%.

(GK/BMcc)