More than one in five Irish pubs have seen decline in staff numbers over past year

VFI tells Oireachtas Enterprise Committee that rising business costs are driving job losses and threatening the future of rural pubs

The Vintners’ Federation of Ireland (VFI), which represents over 3,500 publicans across Ireland, told the Oireachtas Joint Committee on Enterprise, Tourism and Employment later that rising business costs are contributing to job losses across the pub sector and threatening the viability of many rural pubs.

In its opening statement to the Committee, the VFI outlined new survey findings showing that 22% of pubs reported a decrease in staffing levels over the past 12 months, with publicans citing ongoing cost pressures as the primary reason for reducing employee numbers.

The trend is also reflected across the wider food and beverage sector, where recent CSO figures show employment declined by 15% over the past year.

Chief Executive Pat Crotty has previously said the figures reflect the growing strain on businesses attempting to absorb sustained increases in operating costs.

“These figures are clear evidence of the pressure pubs are under. Publicans are being forced to reduce staffing levels simply to keep their doors open. For many smaller and rural pubs, the current cost environment has become completely unsustainable and poses an existential threat to future viability.”

The Committee heard that publicans have experienced significant increases in key operating costs over the past five years, including electricity costs rising by 70%, wages by 40%, and water tariffs increasing by 30% in 2024 followed by a further 10% increase in 2025.

Mr. Crotty told TDs and Senators that the continued loss of pubs would have consequences far beyond the hospitality sector itself.

According to the VFI survey, 65% of publicans said rising business costs are having an unsustainable impact on their operations, while 41% reported that trading conditions are worse than they were 12 months ago.

Confidence in the future outlook is also weakening, with almost 42% expressing a lack of confidence in the future sustainability of their business.

The Committee heard that more than 2,200 pubs have closed across Ireland since 2005, representing a decline of over 25% in the total number of licensed pubs. The average rate of closure has accelerated in recent years to 128 pubs per annum.

While welcoming the restoration of the 9% VAT rate for food-led hospitality businesses, the VFI told the Committee that the measure does not benefit the majority of rural pubs, with 64% not serving hot food.

As part of its Budget 2027 submission, the VFI is calling on Government to introduce a new On-Trade Sustainability Scheme aimed at protecting smaller and rural pubs.

The proposed measure would operate through a targeted tax credit linked to verified purchases of draught products, with support capped at €20,000 per premises.