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Closed for business Murphy Blacks in Kilkee is the latest restaurant to close its doors as the industry grapples with the VAT increase
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a more regional balance. Cracking the hammer on top of t hasn’t been a great month for Irish restaurants. The government has stated it’s going ahead with plans to everyone clearly wasn’t a good idea. All over the country, introduce calorie information on menus while the rural restaurants are closing.” ramifications of the VAT increase are being felt right across Finding qualified staff was another issue for Cillian and Mary the country. Prominent restaurants like the Rathmines branch as was maintaining the high standard of food that the of Fallon & Byrne, Amuse on Dawson St in Dublin and restaurant had become known for. “It’s becoming harder to Michelin-starred Mews in Baltimore, West Cork announced run a quality restaurant and still make a few quid at the end they were permanently closing, much to the dismay of the of the year. I was in a restaurant in Dublin where I had to walk industry. The latest restaurant to through the kitchen to get to the close its doors is Murphy Blacks toilet. I have no problem with that in Kilkee, Co Clare. Operating “When we looked at the VAT bill and I don’t think it’s a reason for a and deducted it from the end of since 2004, its owners Cillian restaurant to be closed down, but I’d be shut down for the same thing. Murphy and Mary Redmond year trading we asked ourselves, have cited the VAT increase as Maybe allowances are made for what are we doing this for? We’re one of the reasons for the smaller premises in Dublin but it’s putting 70, 80 hours a week into a very hard for me to look at something closure. “When the VAT was brought down to 9%, at the time like that and wonder, how come business and we’re barely getting that kept us going. I think they’re getting away with it and I’m minimum wage out of it” increasing it to 13.5% was the being punished?” If you’re a restaurant owner in wrong decision at the wrong time. For us, it was the straw that Ireland right now, you may feel like broke the camel’s back for sure. Ultimately when we looked you’re under siege. The VAT increase came into effect earlier at the VAT bill and deducted it from the end of year trading this month, the minimum wage is set to increase in February, we asked ourselves, what are we doing this for? We’re putting food costs are on the up and the threat of mandatory calorie 70, 80 hours a week into a business and we’re barely getting counted menus looms large. Yet, millions are being pumped minimum wage out of it,” said Cillian. into tourism incentives, proclaiming Ireland a unique food destination. “We’re urging people to come to Ireland for If a more nuanced, regional approach to the VAT issue had been taken, we mightn’t be seeing so many restaurant the great food but the decisions being made right now are closures today. “I have an issue with how the Irish Hotels making it very difficult not to go to a wholesaler and ask Federation and the Restaurants Association of Ireland them to make our desserts. We’ve always taken great pride fought the VAT issue. They looked at the country as a in our homemade desserts but I can see why some whole and fought it on the basis that it was the wrong restaurants will have to go down that road now. We’re going decision for everybody. I understand that you can’t have to end up with tourists coming to Ireland and saying the food is fine but it all tastes the same.” a completely different VAT rate for Dublin and the rest of the country but a better alternative could have been Closing the restaurant wasn’t an easy decision for Mary retaining the 9% VAT rate and to offset the cost to the or Cillian. “Murphy Blacks was part of our identity and exchequer, applying a bedroom tax in the bigger cities we’re aware of the impact it will have on Kilkee. However, like Dublin, Cork and Galway. That would have achieved we have to move on so it’s onto the next chapter for us.”
ISSUE 1 2020 | HOTEL
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