A survey by the Vintners Federation of Ireland (VFI) has found that 84% of publicans report that no family members wish to inherit their pub.
The finding comes as the VFI’s benchmarking survey also showed that 37% of publicans are considering retirement within the next two years.
The group described these figures as a “a worrying trend” for the future of the pub trade and warned that rising costs in the industry are putting the viability of the pub trade at risk.
The VFI said “unsustainable labour costs and the escalating overall cost of doing business, is forcing many publicans to consider retirement”.
CEO of the VFI Pat Crotty said the increase in labour costs, due to the planned introduction of the living wage by the beginning of 2026, will be “unsustainable”.
“”If we move to a living wage within 18 months, bank holiday pay will be almost €35 per hour for our most junior staff,” he said.
“Such costs are simply unsustainable for our members and could severely impact the ability of pubs across Ireland to operate viably,” he added.
According to the VFI’s study 36% of pub turnover is “currently consumed by labour costs alone and that figure will increase to over 40% with the introduction of a Living Wage”.
However, VFI President John Clendennen said members are facing “facing rising costs across the board from food and drink to utilities and insurance”.
“These factors are placing immense pressure on the viability of pubs,” Mr Clendennen said.
He added that while some pubs are “thriving”, the findings of the survey “underscore the urgency of the situation for many others”.
Mr Clendennan described the percentage of publicans looking to exit the sector as “significant,” adding that this combined with a lack of succession plans will put many local pubs at risk unless “decisive action is taken”.
Mr Crotty said the future of the pub industry is “essential not just for the pub owners but for the cultural and social fabric of the country”.
“These pubs are more than just businesses; they are the heart of many of our communities, offering a place for social interaction, celebration and tradition,” he said.
The VFI is calling on the Government to introduce supports for the pub sector including re-evaluating the living wage, target relief measures such as reducing employers PRSI, alcohol Excise Duty, reducing the standard VAT rate by 2% and commitment to set the hospitality VAT rate permanently at 9%.
The representative group has also urged the Government to consider developing a scheme for new entrants into the industry and next generation publicans to encourage succession and ensure pubs remain viable in more local areas.
Lat year, a report conducted by Drinks Industry Group of Ireland found almost almost 2,000 pubs in Ireland have closed since 2005 with the group finding rural businesses are most at risk of shutting their doors.
