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BreakingNews.ie
01-05-2025
- Business
- BreakingNews.ie
150 restaurants closed in first quarter of 2025 due to business costs, survey shows
The Restaurants Association of Ireland (RAI) unveiled the findings of its Cost of Doing Business 2025 survey, highlighting the mounting financial pressures facing restaurants and hospitality businesses across the country. With over 170 business owners participating, the results offer a sobering snapshot of an industry grappling with rising costs, shrinking margins, and growing uncertainty about the future, RAI said. Advertisement The pressure on the sector continues to result in closures, with 150 restaurants, cafés, gastropubs and food businesses shutting their doors in the first three months of 2025 alone. RAI said these figures underline a deepening crisis and reinforce the urgent need for meaningful support. 65 per cent of respondents reported a decline in financial performance in 2024 compared to the previous year. Business owners identified wage increases and escalating operating costs as the most pressing challenges. The impact of these pressures is already being felt, with many restaurants forced to reduce staff, raise menu prices and seriously question their long-term viability. Advertisement The survey reveals that payroll costs now account for nearly 39 per cent of turnover, a significant increase from just under 32 per cent in 2022. Food costs and wages Food costs have also surged, rising from 28 per cent to over 34 per cent of turnover, while insurance and utility bills have climbed by 32.89 per cent and 25.81 per cent, respectively, over the same period. Employment trends reflect the strain, with full-time staff levels dropping by 10 per cent and part-time roles by seven per cent since 2022. Wage increases between 2022 and 2025 have been particularly steep with minimum wage increasing by over 28 per cent. Meanwhile, menu prices have not kept pace with soaring input costs, increasing by just 16.92 per cent for lunch and 18.75 per cent for dinner. Advertisement The cost of ingredients and energy has also seen dramatic inflation. Between 2022 and 2025, the price of fruit and vegetables rose by nearly 50 per cent, beef by 96 per cent, and chocolate by a staggering 157 per cent, RAI said. At the same time, gas costs increased by over 58 per cent per kilowatt-hour, and electricity by more than 96 per cent. Looking ahead, 94 per cent of businesses expect food costs to continue rising in 2025, while 88 per cent foresee increases in beverage prices. Four in five restaurants anticipate cutting staff hours due to wage inflation and increased costs, while 70 per cent expect to reduce overall staff numbers. Advertisement Commenting on the findings, Restaurants Association of Ireland chief executive, Adrian Cummins, said: "These findings are a glaring red alert for the Government and every politician in the country. The food-led hospitality sector is under relentless financial pressure and the consequences are playing out in real time. "Without immediate and meaningful supports which include cost containment measures I can guarantee the pace of closures and job losses will continue in every town, city and village across Ireland. Ireland Ronald McDonald House for new National Children's... Read More "Restaurants are not just under pressure; they are on the edge. Restoring the nine per cent VAT rate isn't a luxury, it's a lifeline. It's the breathing space businesses need to survive rising wage costs, unaffordable energy bills and extreme food inflation. "Yes, recent Government steps to support business are welcome. But the promise to restore the nine per cent VAT rate, a commitment already made in the Programme for Government must now be honoured and confirmed to give businesses clarity on their futures. Advertisement "We've already seen 150 restaurant and café closures in the first three months of 2025. If this trend continues, we are on course for another catastrophic year of shutdowns and job losses. "When a restaurant or café closes in rural Ireland, it's almost always permanent. These aren't just economic losses; they rip through communities. Our towns are being gutted. Our villages are being hollowed out. We cannot let this continue any longer."
Bahrain This Week
31-03-2025
- Business
- Bahrain This Week
Unmatched Cost Advantages for Logistics & Manufacturing Firms
According to the 'Cost of Doing Business in the GCC', manufacturing and logistics sector reports published by the EY's US office, businesses operating in Bahrain benefit from annual operating cost advantages of up to 69% in logistics, and up to 41% in manufacturing compared to neighbouring Gulf Cooperation Council (GCC) countries. The in-depth study, which reported Bahrain International Investment Park and Bahrain Logistics Zone as the most cost-competitive special economic zone (SEZ) in the GCC to operate a manufacturing or logistics business. The reports collected and analysed key data, factoring in both direct and indirect annual costs associated with operating companies, such as office space, labour, transport and logistics, taxes, utilities, business registration and licensing comparing Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The island nation of Bahrain, strategically located at the heart of the Gulf serving as a gateway to the region, has prioritised maintaining its cost competitiveness. A cornerstone of its strategy of maintaining its position as a trusted destination of choice for foreign investment with a focus on attracting investments into high-value sectors, coupled with its national priorities of realising key infrastructure projects and continuing to upskill and future-proof its talent pool, Bahrain continues to work towards building a diversified and resilient economy. Exemplifying investor trust, Bahrain's FDI Stock Relative to GDP is more than double the global average, standing at 93.6% as of 2023 (GCC:27.5%, World: 44.9%) Commenting on the findings, Ali Al Mudaifa, Chief of Business Development at the Bahrain Economic Development Board (Bahrain EDB), said, 'Offering long-standing stability and strong interregional cooperative ties, the Gulf region continues to attract investments driven by ambitious growth visions – GCC economies collectively grew by 22% from 2021 to 2023, to reach a combined total of about USD 2.1 trillion; this is expected to reach USD 2.8 trillion by 2030 according to the IMF.' Bahrain stands out as a trading hub providing significant savings in various operational areas. Within the logistics report, the cost of port storage costs are up to 52% more competitive, enhancing Bahrain's attractiveness for businesses seeking to set up or expand into the region. From both sector reports, EY indicated that annual labour costs in Bahrain are lower than the GCC average – up to 30% less for logistics companies and up to 24% less for manufacturing. The Chief of Business Development at Bahrain EDB added, 'Bahrain's competitive advantages, favourable tax environment, and agile regulatory policies underscore a steadfast commitment to fostering a seamless and business-friendly investment environment, positioning our island nation as the ideal destination for logistics and manufacturing companies looking to expand in the GCC and beyond.' Andrew Phillips, Partner/Principal & Co-leader of Quantitative Economics & Statistics (QUEST) at Ernst & Young said, 'Special economic zones and other measures are helping GCC governments to continue to diversify by attracting large-scale projects to reshape national economies by developing industries of the future. For manufacturing and logistics firms eyeing the region in search of a competitive cost environment, our sector reports determined that Bahrain is the most cost-competitive across the Gulf special economic zones we analyzed based on attractive labor, real estate rental, and utility costs for businesses and a low cost of living for employees.' Bahrain's strategic location at the heart of the GCC further enhances its appeal, particularly for road transport. Companies can save 71% and 65% on average when shipping 40-foot containers to Dammam and Riyadh, offering significant value. With the fastest customs clearance times and the shortest transit routes between seaports, airports, and logistics zones, Bahrain is emerging as the Gulf's most efficient and cost-effective logistics gateway. The island nation is home to several global companies that have successfully leveraged these advantages. Notable players in the logistics sector include DHL, which has established a significant operational presence in Bahrain; FedEx, the anchor tenant of Bahrain Cargo Village, and DSV, a global leader in supply chain services. On the manufacturing side, companies like Mondelez and Arla have chosen Bahrain as a strategic base for their regional operations, benefiting from cost efficiencies, logistical advantages, and a highly skilled talent pool.
