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More than 2,200 pubs have closed across the country since 2005.
The traditional Irish pub, long considered the heartbeat of rural and urban communities, is facing crisis.
According to the Vintners Association of Ireland, more than 2,200 pubs have closed since 2005, with industry leaders warning that the pace of closures is accelerating due to rising operating costs.
Eamon O’Rahilly, proprietor of the Spotted Dog in Janesborough and chairperson of the Limerick City Vintners Federation, spoke on Live 95’s Limerick Today about the changing landscape of the industry.
He said that while pubs remain important social hubs for events like christenings and funerals, the era of the daily regular is fading.
O’Rahilly said that energy costs, labour costs and a high staff turnover are pushing small and medium-sized enterprises to the brink.
Electricity bills have surged by as much as 70% while wages have risen by roughly 40%, compounded by the increase in the minimum wage and the introduction of pension auto-enrolment.
“Wages have to be fair,” O’Rahilly clarified, “but it is quite a financial burden when you add it to lighting, heating, and insurance. We are finding it harder and harder to find that disposable income to keep the doors open.”
The “event-driven” nature of the modern pub means that many premises are now struggling on weekdays.
Some publicans in County areas have begun “writing off” Mondays and Tuesdays, choosing to remain closed when custom is low.
O’Rahilly also pointed to lifestyle changes, such as the rise of coffee shop culture and stricter drink-driving legislation has fundamentally altered how people access their local pub.
However, he remains adamant that the pub offers a unique community element that coffee shops cannot replicate.
“There are fellas who go to the pub just to meet their friends. You end up striking up a conversation with someone, which doesn’t seem to happen so much in the coffee shop.”
With the government’s recent VAT reductions primarily benefiting food-serving establishments, the Vintners Federation is proposing a new targeted tax credit system to help pubs that primarily sell drinks.
The proposal includes a tax credit based on the volume of draught beer sold and is asking for a €20 back per 50-litre keg. They are also asking for a cap of a maximum rebate of €20,000 per year.
The proposal aims to reinvest back into the business to cover rising overhead costs.
O’Rahilly pointed to the community-led purchase of a 150-year-old pub in Kilteely by 26 locals as an example of how much these institutions mean to the public.
“It shows the importance of where the pub stands,” he said. “It would have been sorely missed if it weren’t there.”
Listen to the full interview below.