Seven in ten food-serving pubs in Dublin also indicate that the VAT hike has made them less inclined to hire new staff.

Three-quarters (73 percent) of food-serving pubs raised their prices following the government’s VAT increase last year. This led to an average price hike of €1 per dish in 24 percent of pubs, €1.50 in 22 percent, and €2 in 17 percent.


Since the VAT increase, 42 percent of Dublin pubs serving food have experienced a decrease in lunch and dinner orders, 14 percent have seen a drop in dessert orders, and 11 percent in breakfast orders.

Two-thirds (68 percent) of Dublin pubs serving food do so daily. One in six food pubs cite economic reasons for not opening every day.


Almost 60 percent (58 percent) of all Dublin pubs (both food and non-food) believe the government has poorly treated the hospitality sector recently, with only 14 percent holding a positive view of the government’s approach.

Typically, food accounts for 35 percent of the turnover in Dublin pubs, reaching up to 50 percent in many establishments.

Over 350 pubs across Dublin participated in the survey, representing about half of the city’s pubs. Currently, around 550 pubs in Dublin serve food.


Donall O’Keeffe, chief executive of the LVA, commented on the survey, stating: “These statistics underscore the need to reduce the VAT rate on food. Since the government increased the VAT rate by 50 percent last year, we’ve seen hospitality businesses struggle. This survey shows that Dublin pubs are also affected, with half of those serving food reporting a drop in business.

“Business is declining, prices are rising, and potential jobs are being lost due to the government’s VAT approach in hospitality. This could have been avoided if they had retained the 9 percent VAT rate on food. Meals in pubs aren’t a luxury, and the government’s blanket increase has harmed the sector’s viability at a time when government finances are strong.”

Mr. O’Keeffe added: “It’s crucial that the government addresses this in the upcoming budget and reinstates the 9 percent VAT on food. The government claims to support small businesses, and the entire hospitality sector is calling for the 9 percent VAT rate on food as the necessary policy response.

“Our survey also highlights significant discontent with the government across the sector. This dissatisfaction will only grow if the VAT rate isn’t addressed in the budget.”