Over 40% of Dublin food pubs to reduce staff if lower VAT rate delayed, survey finds

More than 40 per cent of pubs which serve food in Dublin have said they will have to reduce staff if the lower VAT rate is delayed until 2026, according to research by an industry group.

The survey from the Licensed Vintners Association (LVA) shows 10 per cent of pubs will also consider putting a stop to serving food altogether if there is a delay.

Just over half of Dublin’s food pubs have seen their food sales decline since the higher VAT rate was introduced in September 2023.

About 2- per cent say they have seen a drop in sales of more than 10 per cent and approximately 1 in 12 pubs in the capital say they have stopped serving food.

Lunch is the meal which has seen the largest drop off, with 62 per cent of pubs saying they have seen a decline in the number of orders.

34 per cent say they’ve also seen a drop in dessert orders, 28 per cent have experienced a decrease in customers ordering dinner and 22 per cent have seen the number of breakfast orders diminish.

70 per cent food pubs also say they have had to reduce the number of dishes served on their menus since the higher rate of VAT took effect.

52 per cent have stopped serving steak due to cost reasons, 26 per cent say they’ve had to stop serving seafood and 17 per cent have stopped serving roast dishes.

92 per cent of pubs want to see VAT 9 rate applied from Budget Day and just eight per cent from 1st January 2026, while 96 per cent of Dublin pubs want the VAT rate for food to be permanently left at nine per cent.