A quarter of all Co. Waterford pubs that were in operation in 2005 have now closed, a new report has revealed.
The report, which was published by the Drinks Industry Group of Ireland (DIGI), shows a total of 66 pubs in Co. Waterford have closed their doors in the past 20 years.
Neighbouring counties Cork and Tipperary have both experienced even sharper decreases of 31%. Fellow Munster county Limerick saw the biggest decrease, standing at 36%.
All 26 counties have seen some sort of decline in pub numbers, with Dublin experiencing the smallest decrease at just 3%.
Nationwide, a total of 2,054 pubs have shut down in the last two decades, a decrease of 24%.
This represents an average of 114 pubs a year. However, the average has been much higher over the past four years, with an average of 144 pubs closing a year since 2019.
The report follows a recent survey of 600 pubs and restaurants, which found that almost one in four had seen their business costs increase by 20-30% in the last two years.
An additional 15% found that their business costs had increased by over 40% in the same period.
The Restaurants Associations of Ireland also found that 283 food-led businesses closed down in the second half of last year, with a further 212 closing down so far this year.
Commenting on the report, UCD Professor Tony Foley said: “This analysis verifies the consistent trend we have been seeing with pub numbers in every part of the country.
“There is clearly a variation on closures between counties which broadly sees rural areas adversely impacted. The continuing decline is taking place against a backdrop of societal change and cost of business strains.
“Consumption of alcohol has notably decreased, how we socialise is changing, the types of drinks we consume are changing, particularly the rise of low-alcohol and alcohol-free products.”
Professor Foley spoke of the economic challenges that pub owners face in keeping their business going.
“We are also seeing that with many pubs, which are often small, family-run businesses, sustaining business is becoming harder and harder.
“Fostering commercial sustainability is crucial to safeguarding rural Irish pubs. Ireland’s drinks and hospitality businesses are operating in an environment where the costs of doing business are ever rising.
“Energy, insurance, and other cost line items continue to rise, many by double digits. The sector is also faced with one of the most regressive excise tax environments for small and medium enterprises in Europe.”
Kathryn D’Arcy, DIGI Chair and Communications and Corporate Affairs Director at Irish Distillers, also reflected on how taxation and the cost of living are affecting pub owners.
Ms D’Arcy said: “The decline of over 2,000 pubs since 2005 reflects the real change and challenges this sector is dealing with.
“Pubs, restaurants, and hotels employ over 207,000 people which is 8.3% of all employees in the country. These people and the businesses they work for are part of the economic and social fabric of their communities.
“Running such businesses in a climate where the cost of doing business is squeezing more and more is difficult.
“DIGI’s research shows that when government responds, particularly on heavy cost items like taxation, the sector responds. Punitive taxes like excise duty which are in some instances 12 times higher here than in other countries, are one such cost item.”
Ms D’Arcy also notes Ireland’s high alcohol excise, as well as the importance of pubs to Irish tourism.
“Ireland’s excise on spirits and beer is the third highest in Europe, while our excise on wine is the second highest in Europe. We have some of the highest excise duties in the world and the second highest in Europe overall.
“These businesses are integral to Ireland’s tourism offering. We need to take that consideration into account too.
“We are calling on Government to deliver a reduction in Ireland’s extremely high excise duties which would make an immediate, positive difference to the hundreds of small businesses in our sector struggling to stay open.
“We have costed, considered plans on how to do this and welcome engaging with government and others on our proposals,” she concluded.
DIGI’s latest report, ‘Support Growth: A Sustainable Future for Ireland’s Drinks and Hospitality Sector’, provides a county-by-county breakdown of the number of pubs closures in Ireland over the past 20 years.
The report is based on Professor Anthony Foley’s report on ‘The Decline in the Number of Public Houses 2005 to 2023’.
The Drinks Industry Group of Ireland (DIGI) is the umbrella organisation for the wider drinks and hospitality industry in Ireland. DIGI’s membership spans manufacturers, distributors, and the retail sectors.
