Another day, another desperate headline due to the current economic climate.
It’s no secret that the energy crisis and cost of living crisis are having a serious impact on hospitality. In the last few weeks we’ve seen a surge in closures, as well as restaurants and cafés announcing their need to increase their prices.
Most recently Alba in Wexford announced they would be shutting due to the “possible economic crash” on the way; they had been open for 12 years.
Paul Horan, owner of Tramore restaurant The Esquire, spoke to Newstalk about the recent challenges, and the kind of money he’d need to be charging to keep going. After 4o years in business, Newstalk reports he underwent a business viability study that had some shocking recommendations.
Restaurant owner says he’ll need to sell a pint for €20 to make profit
https://t.co/oiRyEDkF9k— Adrian Cummins 🇮🇪🇪🇺 (@adriancummins) October 13, 2022
Horan told Newstalk:
“If I was to remain in business and retain any profit margin, I would now have to raise a steak, which is currently €25 up to in the region of, €60 to €70.”
“If we were to maintain the price margin that I had for my profits say, two years ago, I would need to sell a pint for around €15 to €20.”
Horan acknowledges that no one is going to do that – people will often drink five or six pints in one sitting, which could rack up to as much as €120. Therefore it’s up to the government to step in so restaurant owners like Horan don’t have to charge these astronomical prices.
Header images via Shutterstock & Facebook/Raglan Road Tramore
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