Trump tariffs could cause further threat to Irish pubs, with warning of 1,000 further closures in next decade

Irish Independent

14-07-2025

The research – commissioned by the Drinks Industry Group of Ireland (Digi) – found that 2,119, or one in four, pubs have closed their doors since 2005.
Digi – the umbrella organisation for the wider drinks and hospitality industry – has called for the Government to use the upcoming Budget to introduce a 10pc cut in excise duty, which it says was the second highest in the EU.
Study author Professor Tony Foley said: 'This report reveals a pattern of pub closures across Ireland, particularly in rural Ireland in recent years.
'The addition of profound economic uncertainty through US trade tariffs and reduced levels of inbound tourism further threaten the financial foundations of family owned pubs across the country. In the absence of Government intervention, we are likely to see a further 600 to 1,000 pubs close over the coming decade.'
Between 2005 and 2024 the number of publican licences fell from 8,617 to 6,498, a drop of 24.6pc. On average 128 pubs closed each year between 2019 and last year.
The rate of closures is highest in rural counties, with ­Limerick, Offaly, Roscommon, Tipperary, Laois, Longford and Mayo recording closure rates of over 30pc between 2005 and last year.
All 26 counties experienced pub closures between 2005 to last year. The highest decrease was in Limerick (-37.2pc), followed by Offaly (-34.1pc), Cork (-32.7pc), Roscommon (-32.3pc), Tipperary (-32.0pc), Laois (-30.6pc), Longford (-30.1pc) and Westmeath (-30.0pc).
The lowest decrease was in Dublin with a drop of -1.7pc, followed by Meath with a decrease of -9.5pc. Wicklow had a decrease of 10.8pc and all other counties saw a 13pc or greater decrease.
The Government could improve commercial viability overnight by cutting excise by 10pc
A number of pubs that shut in recent months include ­Lizzie Keogh's in Baltinglass, Co Wicklow, The Hole in the Wall in Drogheda, Co Louth, The Living Room, off Dublin's O'Connell Street, and Katie Daly's in Gorey, Co Wexford.
The study also referenced research by the Restaurants Association of Ireland which found that over 600 restaurants, cafes and other food hospitality businesses closed in the 12 months from September 2023.
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Another 150 closed in the first three months of this year .
Digi secretary Donall O'Keeffe said: 'More than 100 pubs are closing every year in Ireland, due in large part to the high costs imposed by the State. Without immediate intervention, up to 1,000 more pubs will close for the last time, leaving their communities without a vital community and tourism hub. Once closed, such pubs rarely reopen.
'The Government could improve commercial viability overnight by cutting excise by 10pc.
'With Irish consumption of alcohol having fallen to average EU levels and likely to continue dropping, it's no longer justifiable that pubs should be faced with the second-highest excise rates in Europe. This is on top of a hefty 23pc Vat rate.
'The time for the Government to act is now, before it is too late.'
Digi said without immediate action, many villages and small towns will soon lose their last remaining pub which it feels would be a devastating blow to the economic and social fabric of communities.