Irish Are Still Eating Out, But Spending Less

The body representing the interests of Ireland's restaurant industry, the Restaurant Association of Ireland (RAI), is highlighting a drop in both volume and value of business.

Today's annual conference in Co Kildare will be briefed on the results of their new business survey showing a decrease in numbers of diners by 10% and consumer spending falling by between 15% and 20%.

"Our industry survey show that consumers are still eating out but the diner is looking for value and general disposable spend has reduced considerably," Adrian Cummins, Chief Executive Officer of RAI said.

"Restaurants are facing challenging times ahead with the cost of doing business increasing on a weekly basis.

"We are calling on the Government to seriously address the issues that affect the restaurant sector."

The majority of restaurants surveyed expect the to see a 'bottom-out' of the decline in late 2009 with positive growth in early 2010.

Around 48% of restaurants see the current decline worse than what was expected six months ago.

Mr Cummins also said: "Our results also show the cost of operating a restaurant is continuously increasing with Ireland now becoming the most expensive place to do business.

"We pay our staff one of the highest wage rates within the European hospitality sector.

"We are obliged to charge our customers rates of VAT and Excise Duty which are again at the top of the EU league," he said.

Speaking ahead of the forthcoming emergency Irish Budget, he concluded: "Our food input costs are 24% higher than the EU average. The Irish restaurant sector cannot continue within such a regime."

(JM/BMcC)