DUBLIN, Ireland: More than 40 percent of Dublin pubs that serve food say they will be forced to cut staff if the return of the lower VAT rate is postponed until 2026, according to new research from the Licensed Vintners Association (LVA).

The industry survey also found that 10 percent of these pubs would consider ending food service entirely if the reduced rate is delayed. Since the higher VAT rate was reinstated in September 2023, just over half of Dublin's food-serving pubs have reported a drop in food sales. Around 20 percent say sales have fallen by more than 10 percent, and roughly one in 12 have already stopped serving food altogether.

Lunch has been hardest hit, with 62 percent of respondents seeing fewer orders. Dessert sales are down in 34 percent of pubs, dinner orders have fallen in 28 percent, and breakfast orders have declined in 22 percent.

The VAT hike has also led to significant menu cutbacks. Seven in ten pubs have reduced the number of dishes they offer. Over half (52 percent) have stopped serving steak due to high costs, while 26 percent have removed seafood from menus, and 17 percent have discontinued roast dishes.

The LVA survey highlights strong industry support for immediate tax relief. Ninety-two percent of pubs want the nine percent VAT rate restored from Budget Day, while just eight percent are willing to wait until January 1, 2026. Nearly 96 percent of people say that the reduced food rate should be made permanent.

The findings reflect mounting pressure on Dublin's hospitality sector. Operators say the combination of higher VAT, rising costs, and weaker consumer demand is making food service increasingly unviable for many pubs.