Cork pubs facing 'existential threat' with hundreds closed in last 20 years

The Vintners’ Federation of Ireland (VFI) has said that rural pubs in Cork face an “existential threat”, leading to the organisation’s proposal of a new tax credit scheme in Budget 2027.

The VFI, which represents more than 3,500 publicans nationwide, has warned that the viability of rural pubs has reached a critical point, with an increased number of closures and mounting cost pressures.

Chief executive of the VFI, Pat Crotty said the rate of pub closures across the country has increased to an average of 128 per year, with almost 400 pubs in Cork having closed their doors since 2005.

“When a rural pub closes, a community loses more than a business – it loses a social anchor,” 

said Mr Crotty.

According to the VFI, electricity costs have increased by 70% in the past five years, with wages up by 40%, and water tariffs also rising significantly over the same period.

“There is simply no capacity left to absorb further cost increases,” said Mr Crotty.

The organisation is now calling on government to introduce a new On-Trade Sustainability Scheme, based on a tax credit linked to the supply cost of draught products, as a targeted approach to support the on-trade sector.

The proposed scheme would be capped at €20,000 per premises and is designed to support smaller pubs in particular.

A recent VFI member survey showed that trading sentiment has turned negative, with 41% of publicans reporting that trading conditions are now worse than 12 months ago, and 42% expressing a lack of confidence in the future of the sector.

Speaking to The Echo, Fergus O’Mahony, who is the owner of Mary Ann’s Bar & Restaurant in Castletownshend said there are “a lot of problems in Ireland that have affected people’s spending power”.

“We’ve certainly noticed it,” said Mr O’Mahony.

“I’m in business here 44 years, I’ve gone through the collapse of the economy in 2008 and Covid-19, and I’m still here – but if we could get anything to help us get over rising costs, we would very much appreciate it.

“The cost of everything has gone through the roof, Irish people are suffering, there is no two ways about it.

“We’re in a small, quiet rural village – we had the quietest winter we ever had, everything has just become so expensive.

“If the Irish government can give us something to help us out, it would be fantastic.” Owner of the Abbey Bar in Rosscarbery, Seán O’Donovan said he is concerned for the future of his business as “I don’t know what it’s going to bring or what it’s going to hold”.

“We are definitely struggling with rising costs, everything from heating to electricity is a crazy price,” said Mr O’Donovan.

“I’m in a position, like a lot of other publicans, where I’m coming to an age where we have a pub and nobody to hand it down to – we can’t sell them either because nobody wants to buy them.

“I wouldn’t say our business is down, but things have changed, there’s no doubt about that.

“Going back 20 years ago, we did massive sales, we did double the trade we are now for half the price,” he added.

“I’m here 26-years, but I also worked [a full-time job]. I’m retired now, but if I had to depend on this place for a living, I would be struggling big time.

“The government will have to bring in a grant to help pubs stay open, a lot of country pubs are in trouble.

“I would definitely support the VFI’s proposal, they have been outstanding in their support of small pubs over the years, we wouldn’t have survived without them.”