Half of all eateries could close without Government aid package, says Restaurants Association

The Restaurants Association of Ireland has today warned that up to 50% of restaurants in Ireland face closure unless an Emergency Grant Aid Package is issued by the Government.

The Association is also pointing out that recently-promoted 'staycations' or weekends away will not be an option if the tourism and hospitality industry is not supported.

Its statement today came after the release of a report, prepared by Jim Power Economics, which underlines the serious damage caused to the accommodation and food services sector by the Covid-19 crisis.

The report was described by the Restaurants Association as the first fully-costed recovery plan for the industry.

"The Restaurant Sector has been impacted in a devastating fashion by Covid-19. Once it reopens, the trading environment will be extremely challenging as a result of social-distancing requirements, various health protocols, the absence of overseas visitors, and consumer nervousness," said economist Jim Power.

"The Sector is a major employer all over Ireland and is an essential element of economic and social life and is arguably the most important component of Ireland's tourism offering.

"It seems clear that many restaurants will struggle to survive in the challenging environment ahead, but it is equally clear that in order to rebuild the economically vital tourism sector over the next couple of years, it is essential that we have an abundance of high quality restaurants in the country.

"It is essential that the restaurant sector gets the maximum possible support from Government, to get the sector through the difficult times ahead.

"The cost of such support would be far outweighed by the cost of doing nothing, in terms of job losses all over Ireland, closed businesses on the streets of towns, villages and cities all over the country, and the damage to Ireland's tourism offering."

Mr Power's report proposes eight recovery measures for the industry, including:

* The extension of the Government's wage subsidy scheme beyond August

* Local authority charges, such as rates, water, wastewater and street furniture charges being covered by the State.

* A zero percent VAT rate for the restaurant sector until the end of 2021.

* Debt repayment being restructured with financial institutions

* A reduction in excise duties on alcohol

* Providing an innovation grant or €20,000 for eligible restaurants to help them develop and test new methods of doing business.

Speaking today, Restaurants Association of Ireland CEO, Adrian Cummins said: "This report is damning evidence that our sector needs support measures put in place immediately by the Government.

"Our members are stating that a 50% staff layoff is inevitable unless they receive supports and, in the long run, we estimate that almost 50% of restaurant businesses will struggle and shut their doors if the Government do not intervene.

"The government have been promoting staycations and weekends away for the months ahead. Let me be very clear on this. There will be no staycations if our restaurants and hospitality businesses close. Indigenous businesses will be lost forever.

"The landlords and the banks are bearing down on businesses who are already struggling. How can we be expected to stay on top of payments when the new social distancing rules will see the capacity for customers significantly reduced?

"The plan put forward in this report is very comprehensive in both how it will be executed and how much it would cost. But more importantly, it highlights how much it will cost us in the long run to do nothing," said Mr Cummins.