ONE of Cork’s best-known restaurateurs says out-of-control costs have forced her to close her business, with warnings that hundreds more restaurants are on the verge of collapse.
Claire Nash, who has run Nash 19 restaurant in the heart of Cork city for more than 30 years, has become the latest restaurateur to blame rising costs for the closure, joining a list of nearly 230 restaurants or cafes nationwide that have closed since last July.
The closure of a third restaurant in Cork city in just over a week has renewed calls from hospitality leaders for urgent government action to save “an industry in crisis”.
Nash said all the variable costs and risks facing any business have come together to form a “perfect storm” for her.
“I couldn’t hold on to it. I had nothing left in the tank,” she said.
“It’s hard to blame anyone or anything in particular, but the cost of doing business is immeasurable, out of control, and has led me to the end of the road.”
Adrian Cummins, chief executive of the Irish Restaurant Federation, which represents 3,000 businesses employing 150,000 people, said rising energy costs, increases in VAT, increases in the minimum wage and rising supplier costs were all combining to cripple the sector.
“I haven’t seen this volume of closures since the economic collapse in 2012,” he said. “Lockdowns have been increasing at a rapid pace since January 1.
“There are an average of 15 jobs in each of these small cafes and restaurants. This means 3,750 jobs have been lost in this sector in the last few months.
“I’m worried about how bad the situation will get. I’m afraid we will see 500 lockdowns by March 1.
![Adrian Cummins said Adrian Cummins said](https://www.irishexaminer.com/cms_media/module_img/7858/3929479_20_articleinlinemobile_CC_20COVID_20COMMITTEE_20MEETING_20_1090465503_1_.jpg)
“The government is not listening to us. Are they going to let all these companies go to the wall without listening to us?”
He called for an immediate rescue package that should include reinstating the 9% VAT rate for food-led businesses and extending the 10-year repayment period for stored hospitality debt.
“Failure to implement both orders will lead to hundreds of casualties in the business sector,” he said.
Finance Minister Michael McGrath said he planned to meet Nash to get a “full understanding” of the difficulties that led to the closure.
![Minister Michael McGrath said the Nash 19 closure Minister Michael McGrath said the Nash 19 closure](https://www.irishexaminer.com/cms_media/module_img/7858/3929482_19_articleinlinemobile_LC_20nash_2003.jpg)
And he said to
“Claire and her team have made an extraordinary contribution to our city for more than three decades, and the closure of Nash 19 represents a significant loss.“I intend to meet Clare to get a fuller understanding of the difficulties that led to the closure. This understanding is important so that we can all work together and ensure we have the best possible hospitality offering across the country for a long time to come,” he said.
Cork Lord Mayor Kieran McCarthy said SMEs needed greater protection from continuing rising costs.
“There are many cost-cutting levers that only the central government can move,” he said.
Tánaiste Micheál Martin said he could see the “long shadow of coronavirus” after the Covid-19 lockdown, and indicated the Government would take action to find solutions to prevent further business closures.
He added: “There must be a proper analysis of what is going on.”
He praised Ms Nash as a “force of nature” and described the restaurant as an institution and a “forum” for discussion on all things Cork.