‘How many places are actually making proper money?’ - Westport restauranteur calls for VAT rate to be reduced

THE owner of an award-winning Westport restaurant has called for the VAT rate for hospitality to be reduced back to 9 percent to prevent small hospitality businesses from closing.

Frankie Mallon of An Port Mór has said a reduction in the VAT rate to 13.5 percent to 9 percent would make ‘a huge difference’ to businesses grappling with high running costs.

The government had previously reduced the VAT rate for hospitality to 9 percent during the recession before restoring the former rate last year.

Speaking to The Mayo News, Mr Mallon said many small independent businesses were finding it ‘harder and harder’ to make a profit due to ‘huge’ running costs, a high VAT rate and the increase in the minimum wage.

“There’s dozens and dozens of hidden costs that people don’t see. They all affect the bottom line of a small independent run business. They are huge. They prices, we have to pass that on accordingly to the customer,” he said.

Mr Mallon said that some restaurants were finding it ‘impossible’ to keep their doors open due to the high cost of running their business.

The Restaurants Association of Ireland, who are also calling for the restoration of the 9 percent VAT rate, has claimed that 280 of its members closed in the last six months of 2023.  

“They might be working well but it is them three costs that make it impossible for some people to keep their doors open,” said Mr Mallon.

“You can’t afford to be quiet. I know we are all busy in the summer, but you need to be busy in the winter as well. The books need to balance all year round.

“It’s just harder and harder and harder all the time. It’s not getting any easier. People are working harder than ever…to keep their businesses open. They are sacrificing 50, 60, 70 hours a week, and they are probably not getting paid any of it.”

Mr Mallon acknowledged that Westport had become a ‘year-round’ destination but insisted that many smaller operators were struggling to make ends meet.

“Westport is flying, it is busy. But how many places are actually making proper money? Not that many,” he said, before calling on people to support their local restaurants.

“There’s restaurants and cafés closing every day of the week and it’s only going to get worse. From what I’m hearing on the ground from around the country, people are finding it very hard to balance the books. It’s just too expensive to operate a business these days. It’s just the bottom line.”