"If I was to remain in business and retain any profit margin, I would now have to raise a steak, which is currently €25 up to in the region of, €60 to €70.”
Paul Horan, the owner of Tramore’s ‘The Esquire’ warned Newstalk listeners today that without Government intervention, pubs and restaurants will start closing en masse.
Mr Horan has been 40 years in business and was recently told he would need to hike up prices to turn any profit.
"If I was to remain in business and retain any profit margin, I would now have to raise a steak, which is currently €25 up to in the region of, €60 to €70,” he told Newstalk.
“If we were to maintain the price margin that I had for my profits say, two years ago, I would need to sell a pint for around €15 to €20.”
Mr Horan said people obviously just “won’t pay €12 for a pint" and he has no intention of charging prices like that any time soon.
“A man goes out for a pint, he might have five or six, and put that down at €12, he’s in and out for €60 – it is not going to happen.”
He said the Government has to make changes before more and more venues go under due to inflation.
“There has to be some action taken where we can curtail the prices of everything.”
Advisory firm BDO Ireland agreed with Mr Horan, saying closures on the cards across the country due to rising costs of living.
“It is probably a situation that is going to be even more challenging in the months ahead,” BDO Ireland Director Austin Hickey added.
Adrian Cummins of The Restaurants Association recently told The Business Post that “there is one hospitality business per day that’s closing at the minute, the last time we had that was in 2012.”
The CEO fears the number will climb over the next few months.