No-Deal Brexit: How it affects the Restaurant Industry

With recent developments in on the political front, namely, they election of Boris Johnson as Prime Minister of the UK, the chances of a no-deal Brexit has become ever more likely. With less than 9 weeks before the official October 31 deadline, here is what a no-deal Brexit could mean for the Restaurant Industry:

Business Closures

In the short-medium term, there is likely to be some businesses who cannot cope with the rise in tariffs on meat and produce from mainland Europe and latest estimates suggest 1 in 5 businesses, most likely the businesses just keeping their head above water, could face closure due to these challenges.

Decline in UK visitors

A weakening pound, which in the event of a no-deal Brexit could reach complete parity with the Euro, has already started to put some UK visitors off travelling to Ireland (or crossing the border) to shop in the republic. This has a huge effect on restaurants as UK customers have similar eating habits to Irish people, often ordering full course meals which help drive restaurant revenue’s compared to other customers from other parts of the world, who are far more conservative with their orders. 

A reduction in these visitors could see a huge decline in restaurants’ bottom line especially in the border towns

It’s not all doom and gloom

While this doesn’t bode well for the Industry as a whole, the Government of Ireland hasn’t got many quick fixes to this issue except to reduce the VAT rate for Hospitality businesses. A return to the previous rate of 9% would be a huge help for businesses heading into this difficult time. With Pearse Doherty expected to announce a very conservative budget, just before the Brexit deadline, a reduction in this VAT rate could be a huge positive in a budget with very little spend and appease most in the industry.


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