Westmeath restaurateur warns of mass closures, saying VAT rate and costs are ‘decimating’ industry

A Westmeath restaurant owner has told of how spiralling VAT and overhead costs are “decimating” hard-pressed small businesses to the point where a growing number are having to contemplate shutting their doors for good.

David Quirke, together with his wife Denise Buckley, have been the mainstays behind popular Mullingar restaurant ‘Wholesome Kitchen’ for the past five years.

During that time, the casual dining eatery has risen to become one of the midlands town’s and wider locality’s most pre-eminent establishments.

However, rising energy costs, inflation and the reimposition of a 13.5pc hospitality rate has seen it struggle to remain viable.

“We have a small restaurant, but we employ 40 people and I would consider it a very successful restaurant,” David told Independent.ie

“That (VAT rate) has to come down and I would be fairly sure the Government will bring it back down but by the time they do it I think there will be so many businesses that will be just gone out of business. That is not ok because they are offering huge employment.”

To add to the husband and wife team’s financial woes, payroll costs are due to increase by €50,000 this year, sick pay benefits by €12,000 while the Government’s landmark auto enrolment pension scheme due to kick in later this year will add a further €13,000 to the business’ overall expenditure bill.

The business is also expected to incur costs of €3,500 brought about by the addition of February’s newly introduced public holiday alongside record food, packaging and raw material overheads.

Details surrounding the constraints facing small enterprises like those of the Mullingar husband and wife team, comes hot on the heels of the closure of Athlone’s Corner House Bistro last weekend.

Those anxieties were ones which were aired on the floor of the Dáil last night (Thursday) by local Fianna Fáil TD Robert Troy.

He said there was an urgent and pressing need for businesses to be given “certainty” especially when it came to how they intend settling their debt warehousing.

The scheme was introduced following the pandemic to help businesses experiencing cash flow problems, by allowing them to defer paying some tax liabilities until they were in a position to deal with the debt.

David said while he remained a “big supporter” of the various supports government bosses introduced in helping cash-strapped small firms stay afloat during the midst of Ireland’s Covid-19 crisis, the situation facing the wider restaurant sector was stark.

“It is definitely attractive for anyone setting up in business,” he said.

“There is no profit to be made. We are going through a very difficult time and I don’t think a lot of people in government, especially those in the employment and business sectors, have looked at an average business like ours and what actual costs are going to increase in one year.

“I just feel that there are too many additional costs been introduced all at once, coming after record years of inflation. We need the VAT rate reduced immediately.”

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