2,000 Pubs Close Since 2005

A report from the Drinks Industry Group of Ireland shows a continuing decline in the number of pubs in Ireland, with 2,054 fewer pubs today than there were in 2005.

The report, including economic analysis from Economist and Associate Professor Emeritus at DCU Anthony Foley shows that an average of 114 pubs have closed annually over the past 18 years. The number of closures has risen in the last five years to 144. 

Commenting on the report, DIGI Chair and Communications and Corporate Affairs Director at Irish Distillers Kathryn D’Arcy (pictured) said:

“The decline of over 2,000 pubs since 2005 reflects the real change and challenges this sector is dealing with. Pubs, restaurants and hotels employ over 207,000 people, which is 8.3% of all employees in the country. These people and the businesses they work for are part of the economic and social fabric of their communities. Running such businesses in a climate where the cost of doing business is squeezing more and more is difficult. DIGI’s research shows that when government responds, particularly on heavy cost items like taxation, the sector responds. Punitive taxes like excise duty, which are in some instances 12 times higher here than in other countries, are one such cost item.”

Titled “Support Growth: A Sustainable Future for Ireland’s Drinks and Hospitality Sector”, the report includes a county-by-county breakdown of the number of pubs no longer operating. Counties Limerick (35.6%), Roscommon (31.9%), Cork (31.4%), Tipperary (31.2%) and Laois (30.6%) have seen the highest declines, each exceeding the national closure average of 24%. Seven counties experienced a decline of 30% or more.

All 26 counties have experienced a decline in pub numbers since 2005. The lowest number of pub closures over the period came in Dublin, which has seen a decline of 3% in pub numbers. Other counties with lower closures rates include Meath (6.7%), Wicklow (8.9%), Kildare (12%) and Carlow (14.2%).

This latest analysis follows data published by the Restaurants Association of Ireland which found that 283 food-led businesses such as restaurants, cafés and gastropubs closed in the last six months of 2023, with a further 212 such businesses closing so far this year.

A recent survey of almost 600 pubs and restaurants, conducted as part of the DIGI report, found that almost one in four had seen their business costs increase by 20-30% in the last two years. An additional 15% found that their business costs had increased by over 40% in the last two years.

In addition to this, the survey found that if government support, such as a cut in the excise rate, was provided, it would allow the industry to sustain and grow. 23% of business owners would refurbish their business, 18% said they would hire more staff and 13% said they would invest in new offerings or services such as food or accommodation. These figures demonstrate the untapped potential of the industry.