A happy public house should be no more that 23% on average ,this percentage used to be 18 but has climbed steadily o er the years .
Restaurants average 35 to 38% you string a bad month and it could look like 50% at times ,
Pubs that get into food do so out of desperation,the Lilly has simply been too gilded here ,
Your pay roll now matches that of a restaurant plus you lose the pint men and women and it’s very hard to get a good pint in a place that does food,
You are now in a no man’s land situation. ,you have lost the Craic but you can’t afford to charge what needs to be charged to cover the costs ,
MOE I’ve counselled others on this folly for years .
There is no room left now but to pass on charges to customers ,1e a pint over next 2 years just factoring in the minnwage rises of 1.17 next jan and 1.11 the jan after ,
Food outlets are a multiple of that per dish .consider it a 5er a dish abs that’s just to stay still and does not include energy or food Inflation ,
Tbh it evens out in the end,in the 80s the pint almost went up 45% in 3 years (I’ll follow it to the pound) but what’s happening now is too much for any business to sustain in the next 3 year window .
I agree with the min wage as it goes back into the economy and there can’t be any tax forgiveness but they have to spread those tax debts over 10,15 years or the tax payer is in the hook for the best part of the 1.7 bn outstanding ,
I used to not agree with the 9% vat rate but it’s badly needed now .
The sad thing about this is that cork is on the cusp on an unprecedented boom and businesses will fail because of a couple of issues that can be solved in order to give people the confidence to carry on,
The vultures are already circling and there is hints of 2011 about it ,
The effects of last years interest rate rises will only manifest between now and June as most people and households put their head in the sand and borrowed for Xmas ,now comes the pain ,you are simply not going to be buying your lunch out,but I believe this is a temporary situation. And you’d hate to see vultures and “accountant” “square glasses “type people get their hands on good businesses .
There is a widespread contempt for the self employed in ireland ,it is reflected in attituds from the civil service ,the banks (try get a mortgage for a house when you are self employed )and a certain ilk of the public who always wants something for nothing or who are ignorant of the running costs of a business ,
The demise of western culture will be characterised in part by overwhelming over compliance by competing and often contradictory government agencies which whilst keeping the jobsworths employed heaped so much expense on small businesses that they folded and were snapped up by bigger concerns ,this will lead to huge instability and loss of hope ,
It’s almost impossible to start a business from scratch in hospitality these days let alone survive,it’s gone like farming you need three times the acres to make the same as you did 40 years ago ,
Tea break over
