One in five Irish pubs have called last orders since 2005, industry group says

Some 1,892 of Ireland’s pubs were permanently shuttered between 2005 and 2021, a decline of more than 21 per cent against a backdrop of changing lifestyles and higher taxes, an industry lobby group has said.

A new report by Drinks Industry Ireland, based on publicans’ licence renewal data from the Revenue Commissioners, shows that Ireland’s rural pubs have fared worse than their Dublin counterparts over the period.

Almost 5 per cent of pubs in the capital closed their doors for good between 2005 and 2021 compared with declines of more than 10 per cent in every other county. The exception is Co Meath, where just 1.4 per cent fewer licences were renewed in the decade and a half covered by the data.

Laois was the most affected county, with over 30 per cent of pubs calling last orders for the final time over the period.

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The impact of the pandemic on the pub trade is also clear, with almost 5 per cent (349 pubs) being shuttered in the period between September 2019 — some six months before the first public health restrictions were rolled out in March 2020 — and September 2021.

The number of pub closures directly caused by the pandemic may be smaller, however. A spokeswoman for Drinks Industry Ireland said that because the licensing period runs from October 1st to the end of September the following year, renewal data is not available on a month-by-month basis so it is not possible to say how many pubs closed in the period from March 2020.

Just 102 pub licences were not renewed in the year to the end of September 2021, a decline of just over 1 per cent. This figure may also be distorted by the impact of Government supports such as the Employment Wage Subsidy Scheme and the Covid Restrictions Support Scheme.

However, the overall picture is one of decline, which economist Anthony Foley said was due to a number of overarching trends within the industry.

These include the non-renewal of licences after the death or retirement of owners, “low levels of business volume and economic sustainability” as well as “regulatory changes such as tighter drink-driving laws and enforcement allied with weak or non-existent public transport”.

Changes in consumer patterns are also a factor, Mr Foley said, with households now consuming less and less alcohol on average.

Paul Clancy, chief executive of the Vintners’ Federation of Ireland, said that “high alcohol excise tax” is also impacting sectoral growth.

“Exasperated currently with inflation and the cost of living,” he said, “we are calling on the Government to reduce excise tax to support the industry with meaningful measures that will be felt immediately and reduce costs overnight for tens of thousands of business owners.”