Offaly publican says decisive action needed to save many pubs

An Offaly publican has said a new national survey of members of the Vintners Federation of Ireland (VFI) highlights the urgency of the situation of many publicans.

VFI President John Clendennen was commenting on a survey which found that 37% of publicans are considering retirement within the next two years and a staggering 84% reporting that no family member wishes to inherit the pub.

Some 36% of pub turnover is currently consumed by labour costs alone and that figure will increase to over 40% with the introduction of a Living Wage, the survey also found.

Clendennen says: "While it must be acknowledged that some pubs are doing a thriving business, the findings of our survey underscore the urgency of the situation for many others. With such a significant portion of publicans looking to exit the industry, combined with a lack of succession plans, we risk losing many of our cherished local pubs unless decisive action is taken."

The federation says the challenges extend beyond labour costs, with increases being felt across all areas of operation. "Our members are facing rising costs across the board — from food and drink to utilities and insurance. These factors are placing immense pressure on the viability of pubs," says John Clendennen.

The VFI is calling on the Government to introduce key supports to ensure the sustainability of this critical hospitality sector.

Speaking in advance of the VFI’s national AGM in Donegal on Tuesday, Pat Crotty, CEO of the VFI, expressed deep concern over the projected increases in labour costs due to the planned shift to a living wage by the start of 2026. "If we move to a living wage within 18 months, bank holiday pay will be almost €35 per hour for our most junior staff. Such costs are simply unsustainable for our members and could severely impact the ability of pubs across Ireland to operate viably," he says.

The VFI is urging the Government to consider specific measures to support the pub sector, including a re-evaluation of the impending shift to a living wage in consideration of its impact on small businesses; the implementation of targeted relief measures such as a reduction in employer’s PRSI; a reduction in alcohol Excise Duty, which is currently the second highest in Europe; and a commitment to set the hospitality VAT rate permanently at 9%; a reduction in the standard VAT rate from 23% to 21% and the development of a transition scheme for new entrants and next generation publicans to encourage streamlined succession and ensure pubs remain viable in towns and villages.

"These pubs are more than just businesses; they are the heart of many of our communities, offering a place for social interaction, celebration, and tradition," says Pat Crotty. "Supporting them through these challenging times is essential not just for the pub owners but for the cultural and social fabric of the country."