Northern Ireland eateries are being ‘taxed out of existence’ warn top Belfast restaurateurs

A stark warning about the escalating crisis within this important sector came from Bob McCoubrey of the highly regarded Mourne Seafood Bar in Belfast. It followed the shock decision by the chef/owner of the Barking Dog on Belfast’s Malone Road to pull down the shutters after 15 years in the business.

The stylish restaurant was among the most popular in south Belfast.

Bob warned the policymakers: “Many more are on the verge. Sadly, I don’t know of any other sector that is in danger of being taxed out of existence.”

He was quickly backed by other restaurateurs including Michael Deane, the chef/owner of several successful eateries here including the Michelin star EIPIC and Michelin Bib Gourmand Deane’s at Queen’s.

Michael, one our internationally respected chefs, recently gained the highly prestigious Michelin Mentor, a first for Northern Ireland, for his outstanding support for young chefs over many years.

A deeply frustrated Michael, who owns and operates five successful high-end restaurants in the city, said: “The problem is no-one really seems to care as hospitality slips close to the wall.”

And John Lavery, the founder and managing director of Fish City in Belfast, a multi-award-winning seafood restaurant which has invested heavily in sustainability, added: “There’ve been an alarming number of closures in recent months. It’s pressure that is being felt right across the United Kingdom. We really need to see meaningful actions by both the UK Government and the Northern Ireland Office.”

The successful restaurateurs both campaigned vigorously to safeguard the beleaguered sector during the traumatic Covid lockdowns and now fear irreparable damage could result from a combination of factors including the Government’s taxation policies.

Sean Owens, another distinguished chef/educator, described the closure of Barking Dog as “a sorry state of affairs”, saying it is “a great restaurant”.

Hospitality Ulster, the body which represents the sector here, detailed the challenges facing eateries following the latest closure in Belfast, warning: “It’s becoming impossible for a restaurant to make a profit. Unsustainable increases in food costs and VAT at 20%, which is more than double the EU average, are leading to the slow death of many.”

And it also warned Government starkly: “You can’t build a successful tourism industry without places for tourists to eat and drink.”

VAT, for instance, continued in the Republic of Ireland significantly below Northern Ireland. VAT there for hospitality is set at 9% to the end of August. It is then scheduled to increase to 13.5%, still significantly below the rate here and continuing to make the Republic a more popular destination for food and drink.

The reduced rate was introduced by Irish ministers to help offset rises in other operating costs such as energy and food ingredients.

Owners of local eateries fear lower VAT in the Republic could discourage many holidaying there this summer from travelling to Northern Ireland.

Taste of Ulster, an independent body that promotes the hospitality sector, agreed.

Chief executive Michele Shirlow adds: “We are deeply concerned about the challenges facing the sector, including VAT and business costs, and especially the recent closures. We need a vibrant sector to help in regenerating town and city centres and in restoring our tourism industry to the pre-Covid period when it was generating almost £1billion for the local economy.

“Food is a key element in the choice of holiday and short-stay visits. Research also shows that tourists generally more than a third of their holiday money on eating and drinking, which emphasises the importance of a vibrant and creative hospitality industry.”

The reactions followed Barking Dog’s chef/ proprietor Michael O’Connor, announcing: “It’s just become impossible to keep the doors open.”

He said the decision to close the restaurant tomorrow had been made “with an incredible heavy heart” and blamed a combination of soaring costs, staff shortages and the impact of the Covid-19 pandemic on the hospitality industry here.

“Ultimately, it’s been a battle for a number of years now especially that just doesn’t seem to have any other result.

“Unfortunately, I know I’m not alone in this, with other friends in the industry having to make the difficult decision to close their businesses recently, as extenuating circumstances can simply make working life untenable.”