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The employment crisis in the hospitality sector.

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Comments

  • Registered Users, Registered Users 2 Posts: 19,775 ✭✭✭✭Muahahaha


    The industry is also subsidised by the taxpayer through social welfare, thousands of people in hospitality on low pay qualify for the Family Income Supplement payment. Its basically the government admitting that the industry pays so badly that they have to top up employees wages in order for them to survive.

    https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/social_welfare_payments_to_families_and_children/family_income_supplement.html



  • Registered Users, Registered Users 2 Posts: 16,570 ✭✭✭✭Fr Tod Umptious


    So what's your solution ?

    Pay hospitality staff more so that more places become less viable and go out of business ?

    Then you won't need to worry about them getting the FIS, you'll need to worry about them getting the dole full stop.



  • Registered Users, Registered Users 2 Posts: 9,381 ✭✭✭Yurt2


    We're at statistical full employment. Hospitality sector workers are abandoning ship to other sectors that don't treat them like dirt. Factory jobs up and down the country are humming.

    If the hospitality sector is cross-subsidised by the state to this extent, lots of owners don't have a business model, they're essentially roundabout dole recipients themselves.



  • Site Banned Posts: 12,341 ✭✭✭✭Faugheen


    Stop being greedy bastards and get with the times.

    Every other industry has to make changes as time progresses, which means many business owners have to make lifestyle changes to maintain sustainability into the future.

    Many business owners take a temporary hit on profits because they invest for the future. Hosptality doesn’t. They think they can get away with their greedy, bullying ways because there will always be ‘poor wealthy fellas’ types like yourself.

    If you can’t get staff, then consider changing your ways. That’s how business works. Stop crying to the government for cheap labour because you might have to take three foreign holidays instead of four.



  • Registered Users, Registered Users 2 Posts: 16,570 ✭✭✭✭Fr Tod Umptious


    But your assumption is that every hospitality owner is greedy.

    Whereas in reality is that it's a very tight margin industry very exposed to market changes, with a customer base that are very price aware.

    But yeah sure go ahead, fcuk them, let's shink the industry instead of trying to grow it, let's put plenty of people out of work, let's put supplier and all the ancillary parts of the economy that go with hospitality on the back foot.



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  • Registered Users, Registered Users 2 Posts: 965 ✭✭✭SnuggyBear


    I haven't a clue what that has to do with what I said.



  • Registered Users, Registered Users 2 Posts: 27,119 ✭✭✭✭Strumms


    Not every pub owner is.. but my local as I’ve said, prices have skyrocketed, both food and drinks, pints are six, main course about 15 …yet the owners last year bought their 6th pub… the Independent reporting this city centre popular spot was sold to them for 3 million…

    meanwhile we are supposed to feel sorry for them.



  • Registered Users, Registered Users 2 Posts: 16,570 ✭✭✭✭Fr Tod Umptious


    Ok then, let their costs increase by increasing their staff costs

    They might have to cut back and close one or two of their pubs.

    But as long as it's not your local or a one you like I'm sure you won't mind.



  • Registered Users, Registered Users 2 Posts: 7,672 ✭✭✭timmyntc


    If they cant afford to pay their staff enough then they shouldnt be in business. Let them close up and sell the premises to someone else who can make use of it without relying on government handouts to pay their staff.

    I don't see why hospitality businesses should be treated any better than any other business. If a construction site wasnt paying workers enough would you be defending them? Or a factor? Or a call centre? Why are pubs and restaurants treated by you like a sacred cow?



  • Registered Users, Registered Users 2 Posts: 16,570 ✭✭✭✭Fr Tod Umptious


    without relying on government handouts

    So what handouts do the hospitality actually get ?

    Many industries get some sort of government support be it grants, loans etc.

    But what exactly do the get to be treated any diffently, or a sacred cow as you put it ?



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  • Registered Users, Registered Users 2 Posts: 23,246 ✭✭✭✭Dyr


    Because if there's one thing that characterises Irish people its complacency. Sean doesnt mind being treated like a rube so long as the fella next to him is getting the same treatment.



  • Registered Users, Registered Users 2 Posts: 7,672 ✭✭✭timmyntc


    Reduced VAT rates for hospitality businesses

    Price fixing legislation (Minimum Unit Pricing) to help pubs compete vs off-sales

    Blind eye turned to practices such as forcing chefs to work excess hours in breach of labour laws

    Various work permit programs for South Americans to work in Irish hospitality

    etc etc



  • Registered Users, Registered Users 2 Posts: 330 ✭✭cezanne


    The hospitality industry has been fcuking itself for years, this is by no means a sudden thing,. They dumped the social chatty Irish barman for a cheaper European or further afield barman / barista/ waiter so the experience for the American tourist is no longer an Irish experience. Thats what people come for good old fashioned social Irish people, who laugh tell a joke and inter act with the tourist, making them feel welcome and happy. Now all you get are surly Europeans who have no personalities and hate the job and they certainly show it. Nothing to do with PUP or laziness. The Europeans went home and now they want to force the irish to come back, not a chance in hell.



  • Registered Users, Registered Users 2 Posts: 14,474 ✭✭✭✭Geuze


    In terms of pubs, I read articles in business supp of Sunday Times about business plans for new pubs in Dublin assuming 30% net margins.

    In contrast, JD. Wetherspoon makes 7.8% net margin, as far as I recall.



  • Registered Users, Registered Users 2 Posts: 16,570 ✭✭✭✭Fr Tod Umptious


    Vat decrease has been passed on to the public and the public love it, no surprise there.

    Regardless of what people say around here MUP is not about pubs.

    Many industries turn a blind eye to work practices, nursing homes, meat packing for example.

    I was looking for specific supports they get not things they do and get away with.

    Is there a specific hospitality visa for South Americans to come to Ireland ?



  • Posts: 2,264 ✭✭✭ [Deleted User]


    And Sally O'Brien, and the way she might look at you.



  • Registered Users, Registered Users 2 Posts: 1,604 ✭✭✭Amadan Dubh


    As I understand the issues, running costs are too high for targeted profit models to work so higher prices have to be charged but then wages cannot rise as this will feed into even higher costs. Solution? Well, firstly, the question as to whether there are in fact too many hospitality businesses in Ireland is one that does not get put out there by the industry; they seem to be clinging to this idea that we could go back to what we were in 2018/2019 in terms of business levels - this is utter nonsense. We need to see some consolidation and haircuts in the industry.

    Personally, I think the reason there is a wage shortage isn't just to do with low pay and poor conditions but is also due to the supply and demand imbalance; in effect that we have too many restaurants/cafes/pubs/hotels versus the demand that is there and the lack of employees mirrors the lack of demand, which would apply to mean that filling the vacant positions right now (which isn't going to be possible btw) would just mean that there are a lot of people employed in a lot of businesses that are competing for a smaller market share than they can realistically garner in a manner which makes them viable.



  • Registered Users, Registered Users 2 Posts: 7,672 ✭✭✭timmyntc


    Vat decrease has been passed on to the public and the public love it, no surprise there.

    🤣 And pigs have been known to fly



  • Registered Users, Registered Users 2 Posts: 27,119 ✭✭✭✭Strumms


    your situation don’t add up, paying staff a fair wage, and charging fair prices for products and services does not mean they’ll be closing pubs especially after spending 3 million on the 6th one ….



  • Registered Users, Registered Users 2 Posts: 19,775 ✭✭✭✭Muahahaha


    yeah would agree with that 100%, there are loads of hospitality businesses in Ireland that are just no longer viable and instead of complaining that they cannot get cheap labour they need to accept they are no longer viable and close down becasue supply has outstripped demand. There are any number of small towns in Ireland with 10 pubs along the main street, not all of them are viable. My own uncle is one of them, a publican who refused to move with the times and serve food and now all his regular drinkers are dying off and not being replaced and theres tumbleweed blowing through the place most of the week. In my own small town a fourth coffee shop opened recently and its already obvious that the demand for it just isnt there, it is empty every time I walk by.

    On the flip side Im an acquaintance with a publican who only got into the trade in 2012 and is now on his sixth pub and is minting it becasue everything he is involved in is in high demand areas. He can more than afford to pay his staff better to retain them but in the pandemic he let them all go and now is struggling to find staff. He even asked me to work weekends for him a few months back for the grand sum of 11 euro an hour, I laughed because I know from his wife that his city centre pub is turning over 60k a week or 3 million a year. Yet he expects people to work for 11 euro an hour. This simply does not compute, people cannot make their rent on such low wages.



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  • Registered Users, Registered Users 2 Posts: 7,672 ✭✭✭timmyntc


    The other thing is that the hospitality "market" is only shrinking because of costs - a weaker currency (not within our control) or a lower cost of living would make it affordable to pay everyone less, and also mean cheaper inputs, and peoples purchasing power remains the same. The end result is tourism to ireland is more attractive and competitive worldwide, we get more tourists, and hospitality sector gets more business providing more opportunities for staff.

    It's not a new idea - countries like Spain, Portugal and Greece have all been doing this for decades. Keeping the cost of living down aggressively fuels a tourism boom (although those countries also benefit from climate) - likes of Poland, Hungary, Bulgaria all benefit from low cost of living driving western tourism there also, without the sunny med climate.



  • Registered Users, Registered Users 2 Posts: 1,588 ✭✭✭Quitelife


    In a tourist town in County Limerick near me my daughter worked 3 summers ago at this stage for a summer job , all staff were on minimum wage and my daughter was on some lesser minimum wage because she was only 18 . All tips were taken by owner to go towards paying the staffs minimum wage wages.

    One day my daughter cleaning a table got talking to the american couple finishing up, they were on about their holidays in Kerry and how they enjoyed irish dancing theyd seen, my daughter explained how her sister used dance in competitions etc , costumes she wore etc and they enjoyed the chat and gave her a fiver tip as she returned to kitchen with cutlery, The female owner followed her into the kitchen , grabbed her arm and snapped the fiver out of her hand saying staff were not allowed keep tips , she actually hurt my daughters hand grabbing her. My daughter came home that night in a flood of tears and never went back This female owner drives a Big flashy jeep and loves showing it off. This is why hospitality has major issues getting staff. GREED

    Hopefully Tips legislation has stopped this nasty owner and her equals. I wouldnt bet on it.



  • Posts: 25,909 ✭✭✭✭ [Deleted User]


    Yup, can't remember if I mentioned on this thread or not, distant family have a takeaway on the other side of the border. Humming along nicely. Back in the day they opened in the South and couldn't believe the margins in comparison. It was along the lines of 40% v 20% or 60 v 30, can't remember net or gross. Long story short they raked it in for a couple of years, weren't really enjoying the extra hassle and the only kid they could give it to wasn't interested so they closed up. In less than 2 years they were delighted with the money they made despite only being able to spread the start-up costs across a short time.



  • Posts: 756 ✭✭✭ [Deleted User]


    The further this thread goes the more it seems the entire tourist industry is some sort of state subsidized scam. Incredible stuff.



  • Posts: 3,330 ✭✭✭ [Deleted User]


    VAT decrease pocketed by many business owners. When the original VAT decrease came in at the beginning of the pandemic a local coffee shop didn't change its price. Then when the VAT rate was restored he had signs up saying "price increase due to increased VAT rate". Money for jam for that coffee shop.



  • Posts: 14,768 ✭✭✭✭ [Deleted User]


    Think a little bit more on it, it’ll come to you.



  • Posts: 3,330 ✭✭✭ [Deleted User]


    Yep he used the VAT changes to increase his price and therefore his net take. Coffee was €3, should have reduced to say €2.85, he left it at €3 and paid less VAT to Revenue, then increased to say €3.20 rather than restore to the original €3.



  • Posts: 14,768 ✭✭✭✭ [Deleted User]


    The VAT decrease was introduced to support an industry which was hit far harder than many others during Covid, it was not to decrease the prices they charged customers. In fact if they did reduce the prices in the manner you suggested, the reduction in VAT would have had a meaningless effect and completely missed its target, support for the industry.

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



  • Registered Users, Registered Users 2 Posts: 2,993 ✭✭✭mikemac2


    I did hotel work as a student starting as a kitchen porter, then bar staff then night porter.

    Dave10 tells us Irish people think it's beneath them and they consider they are too good for these jobs. Who was doing these jobs for decades before open EU borders?

    There is no pension, casual hours and even if you become permanent you are expected to work unpaid hours. Do you want to spend 40 years at that and have your body broken from hauling wheelie bins of glass down to the cellar? Finish at 3am and be told to be in for 7am and if mention European working time directive and minimum rest period you get laughed at.

    So as a student I did something else that will be widely mocked by some here. I left hotels and went to McDonalds who treated me well, never ever messed up my wages and never asked me to work for free. Some did training programs but I knew it would be over for me after college.

    McDonalds are cleaner than 4* star hotels and realy do not do enough to emphasise and advertise their hygiene. Much better employer than all the Irish hotels I worked for. Including the one who didn't pay us as agreed and so had to bring us in to get cheques from some other account. Meanwhile the bosses spent the day in corporate hospitablity at Galway races.

    Am long gone out of this area now have an office drone job. Irish hotels cannot get Irish staff as they treat them like dirt.



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  • Registered Users, Registered Users 2 Posts: 16,570 ✭✭✭✭Fr Tod Umptious


    But if the vat is reduced then the price should come down.

    A €1 item with 11% vat should cost the consumer €1.11

    The same €1 item with 9% vat cost should cost the consumer €1.09.

    I recall well before COVID there was a vat reduction for the hospitality industry and at the time remember price reductions being passed on.



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