SIXTY or more Limerick pubs could be calling time for the last time this year, according to figures published this week by the Vintner’s Federation of Ireland. Citing 2012 as “one of the worst years on record” for the pub trade, the Federation says that around 20 per cent of its members are at crisis point. Limerick representative with the VFI, Jerry O’Dea agrees that the year ahead will be “extremely difficult” for many traditional Irish pubs. The Mulgrave Street publican blames a number of factors on the falling pub trade and says that other forces will come into play this year to make it even harder to keep the doors open.
“A lot of traders have been saying it was a good Christmas but I’m afraid the pubs are not saying that. In the budget we have another 10 cent on a pint and 50 cent on a quarter bottle of wine and there was an increase in price from some of the brewers before the budget.
“It all makes it harder to compete with supermarkets who are selling cheap drink for people to take home. But all the shops do is sell you the alcohol – they don’t light a blazing fire or provide a comfy couch for you to sit on and drink it. The pub trade is about providing an experience and that costs because it is labour intensive,” Mr O’Dea told Limerick Post.
He said that many publicans have turned their fortunes around by going into food “but not every pub can do that. The small ventures run by a husband and wife with local customers will fare better this year than pubs that employ staff”.
A lot of publicans have got into deep water by running promotions that come back to bite them, Mr O’Dea added.
“They are doing things like selling pints at a promotional price but that’s not sustainable in the long term. The end of the year comes and there are tax bills to meet but they don’t have the money because they’re been selling at cut price. If the tax bills are not paid, they can’t renew their licences and they are operating illegally”. In a statement, the VFI said that “an astonishing 20 per cent of our members are at crisis point. 800 pubs are in serious financial trouble as they face 2013. That is 4,800 jobs at risk”.
