There seems to be a growing number of pubs opening in Dublin these days. Places that have appeared in the past year include the Chelsea Drug Store and JT Pim's on South Great George's Street, Idlewild on Fade Street, the Ivy on Parliament Street, Zozimus on Anne's Lane, Bar Rua on Clarendon Street, Wigwam on Middle Abbey Street, Front Door on Dame Street, Beer Traders in Dún Laoghaire and the return of the landmark Bottle Tower in Churchtown, to name a few.
As new bars open, however, others have closed and the number of pubs in Dublin has dropped from 772 last year to 765 this year. Some have also had a change of use. For example, the Dark Horse (previously, The White Horse) on George's Quay is now a Starbucks. In its heyday, it was an early house that was popular with staff from the Irish Press newspaper, while more recently it was a music venue.
"There is a recovery going on in Dublin city and only a slight improvement in the suburbs," says Donall O'Keeffe, chief executive of the Licensed Vintners Association. "Pubs are opening and shutting all the time. New entrants still have to buy a licence, and a licence will cost around €50,000 from the country where there are hundreds for sale."
John Ryan of commercial estate agent CBRE says: "Planning permission is also an issue for new entrants and is taking up to a year to obtain change of use and complying with building regulations; in the meantime costs are going up. You need deep pockets for a change of use in Dublin.
“Last year we sold 39 pubs with a value of €49 million and in the first three-quarters of this year 27 pubs with a value of €27 million. I expect the full year to turn out similar to last year.
Pádraig Cribben is chief executive of the Vintners Federation of Ireland which represents pubs in the 25 counties apart from Dublin. In the past 10 years, 1,420 pubs have closed.
“In the country, pub closures have been an unfortunate reality for the harsh economic times this country has faced in recent years,” Cribben says.
“Lately the rate of closures has slowed significantly and we have begun to see a gradual improvement in the pub trade as consumer confidence continues to rise. Publicans are looking forward with great vigour to the challenges and opportunities that lie ahead.”
Hotel development
The most prolific opener of bars and restaurants in Dublin during the recession has been the Press Up Group headed by Patrick McKillen jnr. Recently added bars and clubs it operates include Sophie's at the Dean, Mary's on Wicklow Street and Peruke & Periwig on Dawson Street. A hotel development in Ranelagh in Dublin 6 has been granted planning permission and will be a 41-bed boutique property with bar, restaurant and cinema.
The big change in the pub business in recent years is that any premises can apply for a seven-day ordinary licence if it complies with planning permission and health and safety regulations and has acquired a licence from another non-operating pub. Brown Thomas, the Grafton Street department store, now has a full licence to serve beer and spirits in the refurbished third floor area.
On Dame Street, Front Door was formerly a Chinese restaurant, while the Chelsea Drugstore on George’s Street was formally the Oriental Emporium. Idlewild on Fade Street was a tanning shop while Peruke & Periwig was Twohigs Travel on Dawson Street.
Enormous challenges
"There is no doubt business is improving in Dublin and in some big towns and rural areas. Publicans have been very inventive in meeting the challenges," says Constance Cassidy SC, Ireland's leading licensing legal expert.
“Since the anti-smoking legislation was introduced in 2004 and the multiples and supermarkets started buying up licences, and the recession from 2008, the challenges have been enormous. Publicans have become very inventive in giving punters what they want and at the end of the day it is hard to beat a genuine Irish pub.”
The good news is that the market has stabilised somewhat and there are fewer receiver sales and more consensual sales then distressed ones. A number of factors are contributing to this, including that experienced local publicans are coming back into the market and receivers are holding on to pubs as the market has improved.
The pillar banks are now becoming more active in the hospitality industry and beginning to lend again. There are also new sources of funding such as Kilcullen Kapital, Kish Capital, Sankaty Advisors and other overseas funds and US investors.
The Licensed Vintners Association’s O’Keeffe says: “Hopefully Brexit will not make mince meat of our tourism business. The British visitor likes to eat, drink and listen to music in pubs and with 42 per cent of visitors coming from there they are vital to our business.”
