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Pubs return to profit, but 'huge battles' remain - VFI

New VFI President, John Clendennen
New VFI President, John Clendennen

Confidence and profit has returned to the pub sector here following three years of pandemic induced challenges, according to a new survey of rural publicans.

However despite the recovery, those running pubs outside Dublin have warned they face a huge battle to remain afloat and will need State support.

Almost three quarters of pub owners outside the capital now have turnover close to or above what they were experiencing before Covid-19 arrived, the research by the Vintners Federation of Ireland (VFI) found.

A similar proportion of publicans said they turned a profit last year, with over 80% confident their financial performance will be at least equal or improve in 2023 compared to last year.

"In 2020, it felt as if our world was coming to an end," said new VFI President, John Clendennen ahead of the organisation's Annual General Meeting on Tuesday.

"Through an abundance of resilience, innovation and diversity in product offering, we came through the crisis."

"Across the country, pubs have been inventive, many becoming visitor destinations for tourists from at home and abroad, attracting and keeping money and jobs in the country.

However, Mr Clendennen also warned that publicans face significant challenges in maintaining their businesses.

"The Irish pub is a cultural institution, but publicans face a huge battle to keep their businesses viable over the coming years," he said.

"Key supports such as keeping VAT at 9%, and energy interventions, are crucial to the pub trade and the wider hospitality sector."

Investment is seen as key to the future of the sector, with more than a third of respondents to the survey saying they would upgrade their premises in 2023.

However, a range of factors remain a threat, including the soaring cost of energy, insurance and other expenses.