The hospitality poor mouth

2smiggy

https://www.boards.ie/discussion/comment/122562162#Comment_122562162

your under the misconception that all college students are hard workers. Many are stone useless, and there were basic jobs there for them in shops and restaurants for the summer where they could faf around looking at their phones for the summer while getting paid accordingly. Most places with the current minimum wage could not be bothered hiring these. Many college students are good workers and able to do a job. They will get jobs for the summer paying much more than the minimum wage.

BlueSkyDreams

https://www.boards.ie/discussion/comment/122563016#Comment_122563016

It increases costs if the increase is absorbed, or partially absorbed. As in not passed on to the customer.

mulbot

Are businesses entitled to claim any VAT expenses back?

TokTik

Maybe restaurants could decorate their walls with government posters and broadcast the Dail debates through their speakers (only the ones that are favourable to the govt, mind you).

Then maybe they could get a 0% VAT rate like our “independent” print media???

Boggles

https://www.boards.ie/discussion/comment/122563178#Comment_122563178

There is no misconception.

The hospitality sector is a hard sector to work in.

Your plan to pay people less by virtue that they are in college is beyond daft and above all illegal.

Give your head a wobble.

Soc_Alt

https://www.boards.ie/discussion/comment/122562791#Comment_122562791

They pocket the VAT reduction and will increase prices or let go of staff to tackle minamum wage..

homewardbound11

hospitality industry is going to remain in the doldrums until wage inflation catches up, as most of us in the cities and outside are working for American companies that inflation is going to take some time to catch up . For the past 3 years inflation was north or or there abouts 10 percent but wage inflation was down below 3. Simply put it’s a luxury to eat out and if your doing it on a regular basis your either wealthy or have no tied commitments .
When I go out in base a meal ( starter main course and a coffee ) at 50 euro a head .
It’s too costly to do that on a weekly basis .

Podge_irl

https://www.boards.ie/discussion/comment/122563334#Comment_122563334

most of us in the cities and outside are working for American companies

No they aren't. Not even close.

For the past 3 years inflation was north or or there abouts 10 percent 

No it wasn't. It reached a max of just under 8% in 2022 but was otherwise more like 6%.

wage inflation was down below 3

It averaged out about 4% annually since 2020.

tabby aspreme

There's something very wrong in the industry, when a busy restaurant is doing this, Mimosa is booked out continuously and still have to cut back capacity due to spiraling costs, I've tried to get a table there a few times over the past while and you would need to book way in advance to get a table https://www.kildare-nationalist.ie/news/restauranter-forced-into-lay-offs-due-to-crippling-costs_arid-29852.html

thomas 123

https://www.boards.ie/discussion/comment/122563792#Comment_122563792

Yeah, the last thing that should be done offering tax breaks that feed back to suppliers or the profits of the stakeholders.

Food prices are insane for everyone at the moment, would giving PAYE workers a tax break help it? No chance. Like the housing market the prices would just be jacked up again and again with every incentive brought forward. I personally think the only thing for it is for businesses to close and demand to fall and hopefully that might reduce costs and lead to a bit of a reset - probably never going to happen either.

Geuze

I'm sometime sceptical about what the hospitality sector say, but it is true that our elec prices are way too high.

I don't see much effort by the Govt to drive down elec prices, and I don't mean by a few per cent.

I mean 20% - 40% cuts.

Padre_Pio

https://www.boards.ie/discussion/comment/122563884#Comment_122563884

Domestic elec is back to 2018 prices already today. I don't know what commercial rates are

Geuze

https://www.boards.ie/discussion/comment/122563896#Comment_122563896

Are you sure? Let me check.

Geuze

My elec unit rates, ex VAT:

2019

Jan = 18.88

Mar-Nov = 19.98

2020 = 19.98, slight fall to 19.38

2021 = 19.38, rising to 28.11

2022 = 28.11 rising to 44.21

2023 = 44.21

2024 = 44.21, falling to 33.62

I am fairly good at shopping around, but my current rate at 33.62 is well, well above what I paid in 2019.

Not made with hands

https://www.boards.ie/discussion/comment/122563896#Comment_122563896

I doubt that.

Source?

Viscount Aggro

People do be still eating out.

Im down the country… they still love a carvery meal, even if its a takeaway, in a roll.

I do notice, people will skip drinks and just go for the food.

Obviously its with potato served 3 ways.

DataDude

https://www.boards.ie/discussion/comment/122563334#Comment_122563334

See a lot of talk of how expensive eating out has gotten. Checked CSO:

Increase in “Restaraunts & Hotels” since 2016 - 36.3%

Increase in average earnings since 2016 - 35.2%

So data would suggest restaurants cost about the same as they did in 2016 (in real terms). Interested if anyone has any data to the contrary (not anecdotes about your local)? Wonder how much of it is people got used to low inflation for years, and there’s some shock value to the price you see on the bill and not acknowledging the increase in wages is the same?

Keith186

https://www.boards.ie/discussion/comment/122563912#Comment_122563912

I'm on 21.5c ex VAT 24hr tariff, you need to visit the bargain alerts forum more!

Anyway, I don't really think they should have special VAT rates. It is 10% in some other countries but they have more efficient governments. We have money wasters.

Wages and rent are fairly hefty for a lot of them too along with food inflation costs.

Minimum wage wouldn't need to be so high if landlords weren't fleecing the country. They wouldn't be able to do so if the government didn't run the housing market into the ground in the first place.

No easy fix for it other than for lots to close and rent prices and food prices to come down a bit. Or maybe we can bring in 'minimum unit food pricing' for supermarkets and takeaways to get footfall back, just say it's for health reasons, chefs know best etc. just like publicans do.

I moved to my address about 8 years ago there were 48 options on justeat, now there's 110. Obviously lots are takeaways only, but plenty of restaurants have opened up and seem to be ticking over nicely.

Gooser14

https://www.boards.ie/discussion/comment/122562692#Comment_122562692

And don't forget that you have to be aged 20 or over to be entitled to the minimum wage.

Flaneur OBrien

Where is this info on cheap leccy rates?!

https://www.boards.ie/discussion/comment/122562554#Comment_122562554

yes, a weekly shop for one person easily. It's mad.

kippy

Just to come back to this - there's zero chance that the majority of businesses would pass any change in VAT to the consumer - the logic behind the statements they are bringing out is that they need this in their pockets in order to make the business work - handing it back to the customer won't help them in that action!

sbs2010

https://www.boards.ie/discussion/comment/122562536#Comment_122562536

That's totally wrong.

The vat decrease was absolutely to be passed on to customers.

Cheaper bill at end of meal = better value = better chance customers will come out again = more business (profit) to restaurant owner.

All at no cost to restaurant owner.

Any business that put the vat decrease in their own pocket can fook off

Deub

It shouldn’t be a surprise hospitality sector is struggling with the inflation from previous years. People have less disposable income so they make choices. Nothing to do with people needing to be realistic and pay a reasonable price.

For me, lowering VAT is like putting a plaster after an amputation. I hope the government won’t do it but they seem to like throwing money in the air instead of fixing problems.

Viscount Aggro

Young people have less disposable income.. because they are being reamed by foreign professional landlords buying up blocks of apartments. 25 - 50% of income is being spent on rents.

Tony EH

https://www.boards.ie/discussion/comment/122562100#Comment_122562100

The industry, as a whole, is just taking the piss at this stage and it will bite them in the arse.

I was asked to hand over 6.50 for a Guinness in a pub in Drumcondra recently. I won't be going back.

At this point, there's more no go places on the list than there is places to go because everything has gotten out of control price wise.

Tony EH

https://www.boards.ie/discussion/comment/122562500#Comment_122562500

That crap was rampant.

The industry took the absolute mickey after Covid because they knew people would be going out in high numbers after being locked down for a couple of years. The greedy bastards started jacking up their prices immediately after lockdown was withdrawn.

Padre_Pio

https://www.boards.ie/discussion/comment/122564191#Comment_122564191

Here's the govts own press release.

To paraphrase:

‘I introduced this change in recognition of the unprecedented challenges facing particular sectors of the economy...

“I understand that many businesses remain closed for now and those that are open are operating at significantly reduced capacity...

This measure represents targeted, timely and temporary support to those areas of the economy most deeply impacted by the public health restrictions.

https://www.gov.ie/en/press-release/a773d-minister-donohoe-announces-tourism-and-hospitality-vat-rate-to-move-to-9-on-sunday/

There's no mention of helping customers or passing on VAT to customers. Besides, most restaurants were booked out weeks in advance during COVID because they had to cut capacity by a half to maintain social distancing. What's the point of encouraging repeat business?

Packrat

https://www.boards.ie/discussion/comment/122562715#Comment_122562715

This ranks as one of the most misinformed posts I've ever read here, and that's a high bar...

Name your county or area of one on the WAW and I'll point you to two or three excellent seafood restaurants.

Sam Russell

https://www.boards.ie/discussion/comment/122562432#Comment_122562432

You do not understand VAT.

To calculate VAT you total your sales and the VAT you collected at 0%, 13.5% and 23% as charged.

You then total your purchases which carry vat at 0%, 13.5% and 23% and total the VAT paid.

Your VAT return is the difference between the VAT you collected and the VAT you paid out.

Very simple calculation.

Wages and rent does not come into it.