Restaurateurs renew call for cut in minimum wage as business slows

THREE-QUARTERS of restaurants say their business is down on last year, making closures and job losses inevitable, according to the Restaurants’ Association of Ireland.

Some 38 per cent of members surveyed by the RAI said their business was down by more than 30 per cent, while 29 per cent reported a fall of 10-30 per cent. A further 8 per cent said business was down by up to 10 per cent on last year.

The restaurateurs, meeting yesterday at the RAI’s annual conference, renewed their call for a reduction in the National Minimum Wage and the abolition of premium paid for Sunday working. They also want a reduction in local authority rates and greater efficiencies in the provision of services.

“Our industry survey shows that further job losses and closures are inevitable,” Adrian Cummins, chief executive of RAI said. “Restaurants are facing challenging times ahead with the cost of doing business increasing on a weekly basis. We are calling on the Government to seriously address the issues that affect the restaurant sector.”

The RAI is calling for the minimum wage to be cut from €8.65 per hour to €7.65. It also wants the abolition of minimum rates that apply specifically to parts of the catering trade.

Mr Cummins claimed Ireland was the most expensive country in Europe in which to run a restaurant. Catering minimum pay rates were 54 per cent higher than in Spain and 23 per cent higher than in the UK and Ireland was the only country to pay a Sunday premium, he claimed. “We pay our staff one of the highest wage rates within the European hospitality sector. We are obliged to charge our customers rates of VAT and excise duty which are again at the top of the EU league. Our food input costs are 24 per cent higher than the EU average.”