Loss of 20,000 jobs underlines crisis in food-led hospitality
The Restaurants Association of Ireland (RAI) has said a 14.7% decline in employment across food and beverage businesses over the past year underlines the scale of the crisis facing sector hospitality.
The Central Statistics Office's (CSO) latest Labour Force Survey shows the number of people working for food and beverage companies has declined by almost 20,000 over the past 12 months.
Employment in the wider hospitality sector fell from 186,500 in the first quarter of 2025 to 169,600 during the same period this year.
When accommodation businesses are removed from the figures, employment in the food-led hospitality sector has fallen from 136,000 to 116,000, representing a decline of 14.7%.
The RAI said businesses are facing unsustainable increases in labour and operating costs, with many operators now reducing trading hours or closing on traditionally quieter midweek days.
The organisation added that the restoration of the 9% VAT rate will provide essential breathing space for businesses that have been under severe financial pressure in recent years.
In a recent member survey, the RAI found that 56% of business report labour costs exceeding 40% of turnover and that 75% are considering or have already reduced staff hours due to rising costs.
Half (50%) have already reduced opening hours or trading days and 53% are delaying or cancelling investment plans.
The RAI said the latest figures should serve as a serious warning about the pressures facing one of Ireland’s largest indigenous employers.
The decline is particularly concerning for rural towns and tourism dependent communities where hospitality remains a major local employer.
“These figures are incredibly worrying and represent a frightening drop in employment across the food-led hospitality sector. Businesses have been warning for a considerable period that rising operating costs, particularly labour costs, were placing unsustainable pressure on hospitality businesses nationwide. Our survey figures released last month showed this," said Adrian Cummins, CEO of the RAI.
"The Government’s decision to restore the 9% VAT rate from July 1st shows that they have listened to the serious concerns being raised by hospitality businesses across the country.
"It is a very important and welcome recognition of the enormous challenges facing the sector.
RAI CEO Adrian Cummins (Pic: Sam Boal/Rollingnews.ie)
"We acknowledge the engagement and support shown by Government in responding to these challenges and the restoration of the 9% VAT rate which will provide much needed breathing space for thousands of hospitality businesses and the jobs they support.
"However, these figures clearly demonstrate the scale of the challenge facing the sector and why the 9% VAT rate cannot come soon enough.”
(Pic: Getty Images)
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