DUBLIN — William Monaghan, the owner of One Society, a popular restaurant on Gardiner Street, has long dreamed of running his own eatery. However, as he faces a wave of rising costs and declining revenues, that dream is under threat. Monaghan’s restaurant, which specializes in Italian-style pizza and pasta, is currently experiencing what he describes as “January figures,” with July revenue down 15% compared to the previous year.
“It’s scary,” he said. “July is what keeps us going and covers a bad September. But September looks like it was one of the worst months of the year.”
The challenges facing One Society are echoed throughout the hospitality sector, where rising operational costs have become a significant concern. Monaghan noted that staff costs have increased by 9% year-on-year, while energy, insurance, and ingredient costs have risen by 15-18%. Despite a temporary boost from events like the Coldplay concerts at Croke Park, foot traffic remains low, forcing Monaghan to keep prices stable to maintain the restaurant’s value proposition.
In a bold move to offset financial struggles, Monaghan recently opened a second outlet, aptly named “Hidden by One Society,” in Smithfield. Though still in the early stages and operating at a loss, he remains optimistic that the new location will eventually help balance the ups and downs of customer traffic at both establishments. “The situation is hanging in the balance,” he admitted.
Monaghan is among hundreds of small business owners who marched to Leinster House on Tuesday, calling for government support as many in the hospitality, retail, and childcare sectors face similar challenges. Protesters were particularly upset after the recent budget decision not to reduce VAT for the tourism and hospitality sector, despite extensive lobbying efforts.
The event was organized by the Restaurants Association of Ireland (RAI) and the Vintners Federation of Ireland, supported by groups such as Retail Excellence Ireland and the Irish Small and Medium-Sized Enterprises Association. Attendees expressed their frustrations about escalating costs and the daily struggle to stay afloat.
Brian Goff, a veteran entrepreneur in the hospitality sector, emphasized the growing sense of despair. “The costs that have been piled on feel like we are part of a social experiment,” he stated. “We can’t make any money unless something is done for us.”
Jane Cathcart, a former restaurant owner turned accountant for the hospitality industry, also highlighted the gravity of the situation. “I cannot believe how many restaurants have closed down in the last few weeks. This is untenable,” she remarked.
According to the RAI, since the VAT rate returned to 13.5% from 9% in September of last year, 612 hospitality establishments have closed. Deloitte’s analysis shows a 61% increase in insolvencies within the hospitality sector compared to last year.
Despite the grim outlook, government officials have pointed to some positive trends, noting that the number of new startups in the hospitality sector rose by 1% in the third quarter of 2024. Minister for Enterprise Peter Burke mentioned the availability of support measures, including a €170 million “Power Up” grant aimed at assisting small businesses.
However, these assurances have not quelled the immediate concerns of business owners, who are looking towards the next general election for potential changes in policy. RAI chief executive Adrian Cummins warned that without recognition of the needs of small businesses in political manifestos, voters will make their discontent known at the ballot box.
As the hospitality sector grapples with these challenges, Monaghan and others in the industry remain vigilant, advocating for the support they believe is crucial for their survival.