Cutbacks on festive alcohol spending impacting on Cork restaurants

THE decision by many companies to cut back on alcohol spending at Christmas parties to minimise the impact on the attendance of employees in the workplace the morning after is giving Cork restauranteurs and others in the local hospitality trade a nasty financial hangover, it has emerged.

According to those who spoke to The Echo, there’s a sizable shift in business patterns prior to Christmas this year as opposed to the festive season in previous years and this is having an adverse impact on their bottom lines as they look beyond Christmas and the New Year period to the traditional lean times of January and February.

One restauranteur said that business levels might be on a par with last year in terms of numbers but because of increasing costs in terms of food and drink, insurance and wages, there would need to have been a 15% increase in spend to match 2022 levels.

“The weekend trade is definitely heavier and during the week, we see that some companies would have a limit on alcohol whereas the menu price on food (that companies would be prepared to spend) would be more or less the same, there’s no pull back on that,” said Mike Ryan of Coqbull.

“Other companies that traditionally wouldn’t have as much of a budget restraint on their overall experience are being more restrained and are definitely limiting their menu".

“There’s definitely a bit of a pull back but that’s no different to anyone as everyone is being a bit more cautious on what they have to spend.” 

He added that there had been a definite shift on the alcohol side of things and that this aspect of the business is moving to later in the week from the traditionally big corporate nights on Tuesday and Wednesday.

“This week traditionally would be very busy Monday and Tuesday but it’s actually moving into Thursday and Friday. From our reading of it, they’re doing it at times to ensure their employees aren’t going back to work the next day.” 

When asked to give his overall verdict on Christmas 2023, the proprietor of the fashionable French Church Street restaurant said: “If you’re matching figures from last year or the year before, you’re actually doing less people because your prices have gone up because there’s been a price hike in the hospitality sector. There had to be for obvious reasons.

“Unless you’re seeing growth of 15%, you’re only on par from last year. It’s a strong Christmas but when it washes out, it won’t be any record breaker, that’s for sure.” 

Michael O’Donovan, chairman of Vintners Federation of Ireland in Cork, has said that bar-owners are fearing the introduction of higher minimum wage levels in the New Year to coincide with a traditionally leaner time in the pub trade.

The publican, who owns The Castle Inn in Cork city centre, said that his vintner colleagues were reporting that the last couple of weekends had been ‘very busy, very robust and in line with other years’. “One thing that has been voiced is that early week – Monday, Tuesday and Wednesday – has been quiet with regulars not even coming out but weekends, Thursday, Friday, Saturday and Sunday have been very, very strong for late November and early December.

“It had been expected as there was pent up demand and we saw this reflected in bookings for Christmas parties which was very strong,” he said. “The concern is coming into January – new costs such as the increase in the minimum wage and insurance continues to be a battle – we will take the good this month but, unfortunately, we will have a tough couple of months ahead in January, February and March.” 

Mr O’Donovan said there was a noticeable move by companies to book their Christmas parties in pubs, with the possibility of finger food, though the lack of a late night bus service, similar to that which was available other years and during the Jazz Festival was a factor putting people off.

“With the cost of living crisis and everyone fighting for disposable income, to be on a par with other years is a real result for us."

“We’ve seen a huge increase in Christmas parties in pubs this year and it’s been very welcome – groups of eight and ten going out, breaking off from office parties and going to pubs, getting a bit of finger food or maybe not, going to a couple of pubs to enjoy the night, it’s really helped the pub trade this year.” For Richard Gavin, owner of the Spitjack Restaurants in Cork and Limerick as well as the Browns Brasseries in the Brown Thomas stores in Dublin, Cork and Limerick, takings have been down throughout 2023.

“Spending is down, footfall is down, it’s not awful but it’s down on previous years for sure.” 

He said that corporate business came a lot later this year than in previous years as reservations that would have been made in September are now being made in October. “The volume of corporates seems healthy but not the same demand – normally we’d be closing our books in September but there isn’t as much this year.” He said Thursdays and Fridays were the only real ‘in demand’ days for corporate Christmas party business.

One anecdote related by a Cork hotelier who asked not to be named is that a company had paid for 180 to attend a Christmas party but only 140 had turned off and one reason for the significant no-show rate was the cost factor. “While the meal was being paid for and some drinks vouchers were being provided, people were afraid of overspending at the bar or on taxis and the like.”