The crippling cost of living is putting an extra squeeze on pubs with some businesses facing extinction amid the energy crisis.
That is the warning issued today by the Vintners’ Federation of Ireland following the release of a new Consumer Pulse Survey.
VFI chief Paul Clancy responded to the survey by calling for “urgent and substantive energy supports for the pub trade in Budget 2023”.
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The survey revealed that more than four-in-10 Irish adults plan fewer visits to pubs for the remainder of this year due to cost of living concerns.
Mr Clancy was clear that a drop-off in trade will heap extra pressure on publicans – but insisted they “cannot pass on increases to customers [who are] already under financial strain”.
He said: “The survey findings paint a bleak future for the pubs of Ireland, their staff and the communities where they often provide a vital social hub.
“With 42% of pub-goers expected to curtail visits due to cost of living pressures, it is vital that Finance Minister Paschal Donohoe provides urgent and substantive energy supports to the pub trade in Budget 2023.
“Pubs cannot pass on increases to customers already under financial strain and colossal energy costs are going to force pubs to close, or reduce their winter opening times.
“Reduced footfall, coupled with an unprecedented rise in energy costs after 22 months of Covid lockdown closures and restrictions, means we are almost certainly looking at the permanent closure of many more pubs."
The CGA (Curren Goodden Associates) Cost of Living Consumer Pulse Survey was carried out last month across Ireland and the UK and quizzed “1,000 adults who typically visit a hospitality venue every six months”.
The study comes on the back of sky-rocketing fuel bills for Ireland’s nearly 7,000 energy-reliant pubs while they remain counting the cost of the Covid-19 pandemic.
It found that 42% of Irish adults plan to reduce trips to the pub and other hospitality venues between now and New Year’s Eve.
This winter’s feared energy crisis had already prompted warnings from the VFI which represents 4,000 publicans across the country - about pub closures before the Consumer Pulse Survey was published.
Mr Clancy tweeted last week about energy hikes, writing: “These price increases cannot be absorbed by small hospitality businesses.
“Unless substantial supports are announced in Budget 2023, pubs will go dark this winter.”
The warnings follow last month’s figures from the Drinks Industry Group of Ireland (DIGI) that showed how Ireland has lost over 1,800 pubs since 2005, with 349 closing their doors during the Covid-19 pandemic.
Thousands of jobs were sacrificed and every county in Ireland was hit hard, but Laois, Offaly and Roscommon were affected hardest, according to DIGI.
It revealed that there were 8,617 pubs in 2005, but that had plummeted to 6,788 by the end of last year - a 21% decline.
A VFI spokesperson added today: “While there has been a 21% decline in the number of pubs since 2005, according to DIGI, research by the University of York and Newcastle Business School has highlighted the significant contribution of the Irish pub to the economy with 50,000 employed and €60.7 million generated in wages.
“Across Ireland and the UK, the CGA survey found that 93% of consumers are expecting to spend more on household expenses.
“But the survey also found that despite pressures on disposable income, the hospitality industry remains a vital part of consumers’ lives.
“Some 69% agreed that eating or drinking out is the treat they most look forward to, with 80% stating satisfaction with the quality of the product and service on offer.”
An estimated 349 pubs closed during Ireland’s several lockdowns and there are now 6,788 pubs in Ireland, a loss of 1,829 pubs since 2005.
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