More than 40 per cent of Dublin pubs that serve food have indicated they will need to cut staff if the reduced VAT rate is not reinstated until 2026, according to research from an industry organisation, reports Breaking News.
A survey by the Licensed Vintners Association (LVA) reveals that 10 per cent of these pubs may also stop serving food altogether if the delay occurs.
Just over half of the capital’s food-serving pubs have reported a decline in food sales since the VAT increase was introduced in September 2023, reports Breaking News.
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Roughly 20 per cent have experienced a drop in sales exceeding 10 per cent, while around one in 12 pubs in Dublin say they have ceased serving food entirely.
Lunch service has taken the biggest hit, with 62 per cent of pubs noting a fall in the number of meals ordered, reports Breaking News.
In addition, 34 per cent have seen dessert sales decrease, 28 per cent report fewer dinner orders, and 22 per cent have experienced a decline in breakfast orders.
Seven in ten food pubs also say they have had to cut back on menu offerings since the higher VAT rate was implemented, reports Breaking News.
More than half (52 per cent) have removed steak from their menus due to cost pressures, 26 per cent have stopped serving seafood, and 17 per cent no longer offer roast dishes.
According to the survey, 92 per cent of pubs support reintroducing the 9 per cent VAT rate from Budget Day, with only 8 per cent backing a return on 1st January 2026. Additionally, 96 per cent of Dublin pubs want the reduced VAT rate for food to become permanent, reports Breaking News.
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