Restaurants Association of Ireland says Government has all of the evidence to deliver 9% VAT rate
The latest Labour Force Survey (LFS) figures released today by the CSO highlight a worrying decline in hospitality employment, completely rejecting recent claims of a “booming” food sector.
While Q1 2025 data suggested growth, driven largely by part-time jobs, the newly published Q2 figures reveal a clear contraction:
- Hospitality employment stood at 181,000 in Q2 2025, down from 184,200 in Q2 2024 – a 1.7% decrease year-on-year. In contrast, total national employment grew by 2.3%.
- Full-time employment in hospitality fell by 6.7%, while part-time roles rose by 4.1%, increasing reliance on part-time workers.
- On a full-time equivalent basis, employment dropped by 4.3%.
- Dublin hospitality employment fell by 5.0%, while the rest of the country saw a smaller decline of 0.4%.
- Hours worked in food & accommodation fell by 5.42%, equal to 300,000 fewer hours, while overall economy hours increased by 1.83%.
The Restaurants Association of Ireland which represents 3,000 members across restaurants, cafés, gastropubs, and other food-led businesses says these figures confirm what businesses on the ground are experiencing – a struggling sector under pressure from rising costs.
The Restaurant Association of Ireland’s recent Cost of Doing Business Survey also shows the urgency:
- 80% of hospitality business owners said they would have to cut hours without government action.
- 70% said they would be forced to reduce staff numbers if government did not support the sector meaningfully.
Adrian Cummins, CEO of the Restaurants Association of Ireland, said:
“This data from the CSO is stark. Full-time hospitality jobs are disappearing, hours are being cut and businesses are struggling to stay afloat. The Government now has more than enough hard evidence that our sector is in serious decline.”
“Having this week launched a new Economic Report which supports the 9% VAT rate this is further proof that the sector is on its knees. The government must act. There can be no backing down from their promises. Over 20,000 businesses are counting on them.”
“The solution is in their hands. they must restore the 9% VAT rate for food-led businesses from January 1st as promised. Without this, more jobs and hours will be lost across the country. There is no doubting this.”
“The message from both the CSO data and our members is clear: Government must act now. The first step is reinstating the 9% VAT rate in Budget 2026.”
