Cork city traders fear rates rise will see more businesses closing

As Cork city businesses prepared for a bumper weekend for the Guinness Jazz Festival, many owners were concerned about a potential 7% increase in commercial rates currently being considered by Cork city councillors.

The owner of KOTO Asian Kitchen & Bar on Carey’s Lane, Jeff Safar, said that rising costs were “definitely a pressure.

“Supermarket and electricity bills, everything is on the up and nothing is going down. That’s reflected in prices of our suppliers, and our customers have less disposable income,” said Mr Safar.

“We’re a small, family run business and every euro generated here stays in Cork.”

He said that when the Vat for food businesses went down, “that was a big help”, and it helped them to absorb the 5% council rates increase last year.

“But another 7% is a lot on top of that, especially when the city needs a bit of love - you can’t keep putting the price of a dish up.”

Pro Musica owner Eileen Madden said: “This was my 46th Jazz Festival, I’m here since 1980, and year on year, especially since covid, the footfall in the city has fallen.”

In terms of costs, she said. “Everything is going through the ceiling, and it’s hard just to maintain the status quo.”

Ms Madden said council should be incentivising people to shop in town.

“Especially because you walk around the city and it’s all vape shops, nail shops and coffee shops.”

She said she fears an increase in commercial rates “will cause more places to go out of business.”

Sheena McCarthy, of Sheena’s Boutique, said her business has been trading for more than 50 years, including 35 in Cork city, and said that a rise in rates would be difficult.

“It’s not in isolation, we’ve seen massive increases in costs with sick pay, PRSI, shipping, fabrics, electricity – it’s all gone up. Smaller businesses like us are finding it difficult, we work really hard and have to absorb a lot.

“Cork city is a beautiful city, but we need more small businesses, and if cost increases continue people will be forced out of business.”

Ms McCarthy said that while the jazz weekend is a big boost for them, “that’s one weekend”, and that they would welcome the opportunity to work with the council on more initiatives, like more parking or an improved Christmas market.

Timing not good

Thee owner of the Greenwich café on Caroline St, Dermot O’Sullivan, said: “Minimum wage going up has a knock on effect on the price of ingredients.

“Like every other business, we are trying to absorb costs and meet those challenges. It would be unwise at the moment to put the rates up - I don’t think the timing is good right now.”

However, he added: “If the council decide to increase rates, we need to look at where that’s going to go, how it’s going to improve the city.”

On a more positive note, Mr O’Sullivan said that the city council was doing great work in general.

“Sales are up because people are coming into the city, and simple things like the new benches on Patrick St makes the city more inviting and invites new retailers too.”