Majority of restaurants could close without ‘supports’, claims industry association

Nine out of 10 restaurants face permanent closure with 120,000 jobs at risk unless major supports are put in place, the Restaurants Association of Ireland has warned.

In a nine-point recovery plan the association, which represents 3,000 restaurants, cafes, gastropubs and bistros, calls for a zero Vat rate on the tourism and hospitality sector for the duration of the crisis and for 12 months afterwards with a reversion to the 9 per cent Vat rate for the following five years.

Restaurateurs are also seeking protection for leaseholders and assurances that any mortgage holiday is passed on to leaseholders.

They also call on the Government to follow the French example and pay 60 per cent of rents while landlords reduce rent by 20 per cent and the tenant pays 20 per cent of the rent for 12 months of the crisis.

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They want no banking fees for the sector until a Covid-19 vaccine is found, a European Central Bank interest rate on loans and a moratorium on existing loan payments.

Insurance

The association is also seeking insurance payouts for business interruption and no suspension of cover while premises are closed with continued wage and income supports for the sector until a vaccine is found.

Chief executive of the Restaurants Association of Ireland Adrian Cummins said the plan “is the only viable solution for restaurants” and has been sent to Ministers and Government departments.

“We are seeking urgent action to save and recover our industry as nine out of 10 restaurants face permanent closure in the months ahead without urgent action.”

Mr Cummins said engagement at a European level is also vital and that the association and its counterparts in Europe “have sought a unified approach to the recovery of the restaurant and hospitality sector at a European level”.