'13.5% Vat rate has made it very difficult for new and independent food businesses to thrive': Cork restaurant announces closure

Church Lane in Midleton has announced that it will close its doors for the final time later this month.

In a statement, brothers Colin and Barry Hennessy said it is with sadness that they announce the closure of the popular restaurant and that their last trading day will be Sunday, September 15.

“We thank the people and community of East Cork for welcoming us so warmly and supporting our venture. Through their custom, well wishes and kind words,” they said.

They said they are beyond grateful to head chef James Cullinane and his team who they said produced outstanding food that was warmly received and said they have been blown away by the efforts of the in-house team and the exceptional service they have offered customers.

“An amazing team awarded Best Newcomer 2024 at the Irish Restaurant Awards,” they said.

They also thanked their family and friends for all their support, effort and patience as they worked to create this new business, their suppliers who they said allowed them to serve amazing produce and their customers near and far who gave them a huge amount of support.

Regardless of our efforts, rising running costs and the 13.5% Vat rate has made it very difficult for new and independent food businesses to thrive. As is evidenced by so many of our industry peers facing the same fate over the last 12 months.

The news comes just a little over two months after the owner of Sage restaurant in Midleton Kevin Aherne announced the closure of his business which closed its doors on July 28.

Restaurant owners have long been calling on the government to reintroduce the 9% Vat rate from 13.5%.

The 9% Vat rate was initially introduced in response to the challenges faced by the hospitality and tourism sectors during the Covid-19 pandemic as a means to support businesses in these sectors.

The government announced a final extension of the 9% reduced Vat rate for the hospitality sector for a further six months back in February 2023 and it was increased from 9% back to 13.5% in September 2023.

Colin and Barry Hennessy encouraged people to continue to support existing independent pubs, restaurants and cafes which they said “do an amazing job in a very tough industry”.

The brothers said they are in the process of contacting any customers who have outstanding events booked at Church Lane and customers with vouchers have been encouraged to use them before September 15.

Those who do not have the opportunity to do so can email churchlanemidleton@gmail.com and a refund will be processed.