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The employment crisis in the hospitality sector.

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Comments

  • Posts: 14,769 ✭✭✭✭ [Deleted User]


    Again, the Covid related vat reduction the poster was referring to was not intended to be passed on to the customer, which the earlier reduction was. The Covid reduction was introduced to support the sector most affected by Covid. Passing on the reduction to the customer would have meant no support for the industry in was supposed to help. It is there in the Government release I linked.



  • Registered Users, Registered Users 2 Posts: 5,933 ✭✭✭Deeec


    You are right. The purpose of the VAT reduction was to decrease the cost to the customer thus encouraging them to spend and support the industry.



  • Registered Users, Registered Users 2 Posts: 247 ✭✭hayse


    It’s not the vat at all it was the pup



  • Posts: 3,330 ✭✭✭ [Deleted User]


    VAT is paid by the end consumer so I'd have thought it was to encourage consumer spending, not to subvent the business. Wage subsidy schemes and the Covid restrictions support scheme were enough of a life support to businesses. Anyway, the prices shouldn't have gone up once the rate was restored.



  • Posts: 14,769 ✭✭✭✭ [Deleted User]


    Edit. Think it’s time to move the conversation on.



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  • Posts: 3,330 ✭✭✭ [Deleted User]


    Ha ninja edit.i was just coming back to ask where specifically in that press release that it says the measure was to provide additional revenue to the service provider? The measure was to reduce costs to the consumer and therefore increase footfall. But your angry comment is now gone.

    Anyway if you could copy and paste the comment from Paschal Donohoe that said the measure was to line the retailer's pocket that would be great.



  • Registered Users, Registered Users 2 Posts: 14,431 ✭✭✭✭Geuze


    No mocking from me about McDonalds.

    I had heard about their better than average employment conditions.

    I note that Supermacs seem to charge more than McDonald's, and yet Pat McDonagh with millions of profit is complaining that he can't get staff.



  • Registered Users, Registered Users 2 Posts: 14,431 ✭✭✭✭Geuze


    I am convinced that gross and net margins are higher in Ireland than in the UK, in many sectors.

    OK, gross margins may need to be higher, as overheads are higher.

    But net margins seem higher here.

    There is plenty of profit being made.



  • Registered Users, Registered Users 2 Posts: 8,184 ✭✭✭riclad


    We had lockdowns the last 2 years , pubs pay rent, insurance and they were closed for months, tourists stopped travelling to Ireland, of course they could not make a profit. Most of the cafes I used to go are no longer in business . I don't think you can compare Spain vs Ireland, id say taxs, insurances, wages are higher in Ireland I don't think anyone travels to Ireland for a low cost holiday

    One example there's a cafe shop in temple bar it opened in 1974 it closed about 8 months ago. Most business can't continue when the government started the lockdown and they had no customers no income

    when the pandemic started alot of low pay workers left Ireland to go back to Poland or other EU countrys etc and they never came back retail and cafes mainly rely on nonnational workers I do,nt think its incompetence no one predicted a world wide pandemic I don't really know why anyone works as a chef as the work seems to involve working long hours every week for not great wages

    Most offices are still closed so of course it means there's not so many customers for certain shops or cafe s who rely on workers spending lunchtime there



  • Registered Users, Registered Users 2 Posts: 1,702 ✭✭✭ittakestwo


    The crises in employment in Dublin's hospitality industry is related to the housing crises at the moment too.


    Covid shutting the hospitality gave it a disadvantage. Ireland is creating a lot of jobs in all sectors. Alot of sectors were creating jobs even in lockdown.

    When covid first hit alot of foreigner workers in the hospitality left and went home. There accommodation was probably replaced by somebody working in the non hospitality sector. Now the hospitality is back open alot of foreigners workers are needed to fill these positions that were crested overnight when the hospitality reopened. But there is nowhere to live. The accommodation that hospitality workers were in pre covid has been replaced by a person in a non hospitality industry. Also in dublin rents are so high that alot cant afford to rent on hospitality wages.

    Bussiness will shut in the hospitality due to lack of staff and wages will rise for workers in this sector. Except inflation in prices to continue to rise in this sector too as bussiness as there is less competition.



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  • Posts: 16,208 ✭✭✭✭ [Deleted User]


    When covid first hit alot of foreigner workers in the hospitality left and went home.

    A lot more of them stayed though. Expiring visas during the covid period were automatically extended regardless of the individuals circumstances.. and foreign workers were able to get the same supports as Irish people during the covid period. It's also worth considering that Ireland had a generally quicker rollout of the vaccine (and a better variant) with less costs to the person than most of the nations where these low-skilled workers came from. TBH I doubt all that many foreign workers left during covid. Would you have some stats to back up your claim?

    Housing is an issue as cost factors into things, but it's worth considering that in many cases, while a place might be rented out to one or two people, there's likely to be four or six people living there, sharing the costs involved.

    The Hospitality sector declined because it revolves around the transaction of services which are face to face or in person.. Which covid, the government restrictions, and the conditioning we've received from the media/State for two years, have encouraged people to avoid. Even now, many people are hesitant about being around too many strangers, and while most people are jumping at the chance to leave all things covid behind them, the older generations aren't. There's a certain hesitancy among people, as if they're waiting for something worse to come along.. which will factor into hospitality considerations.

    Lastly, Ireland has become damn expensive. Oh, it's been noticeably creeping up for a long while but these last two years really made me realise just how bad it is. The cost of a few pints isn't attractive in the slightest. Nor has the general quality of service of venues increased to match the rising prices they're demanding. Pubs generally haven't changed much, the nightclubs in Ireland are still stuck in the 90s (along with the smell of sweat), and cafes are generally little places seating a few people, and hardly comfortable. Takeaway/fast food quality is extremely low, and unreliable (sure, it's meant to be, but take a look abroad at the range of options, and the introduction of "healthy" alternatives). Even restaurants haven't improved much, and the selection is still rather dismal... with excessive costs for what is being provided. Sure, Dublin has a great range of options, but then again, still not what I'd expect of a capital city, for a country that's supposedly as wealthy as Ireland.

    I went for a walk around Galway city looking for a decent cafe to spend a few hours reading. No joy. Sure there's a Starbucks. Grand. A whole pile of smaller, more student-like places, but none of them are comparable to the larger, and more comfortable cafes you'll often find abroad. Spoke to a few locals, got recommendations, and ended up in restaurants or pubs instead of an actual cafe that could provide a proper atmosphere (Yeah, Starbucks tends to do it well, but it's still the McDonalds of coffee)

    Honestly, I came home just before covid hit, didn't get much chance to play, but after covid was lifted, I went out a fair bit hitting a lot of the larger population centres, and a few of the smaller towns. Cringe. Oh, it's quaint, cute, friendly, or whatever, but it's still little different from 3 decades ago, in quality of service. At the end of my little holiday across Ireland, I looked at what I had spent, and thought to myself that it wasn't even remotely worth it. And I didn't even have any excessive drinking nights, and yet, the costs involved? Yikes.

    The Irish hospitality sector refuses to face the hard truths of needing to be competitive, and to provide top quality servicing. It used to do both well, but now? It's generally very poor form. And while I do recommend to my foreign friends to visit Ireland, I don't recommend to them to stay in hotels or spend money outside eating.. it's just not worth it unless you want to spend a fortune, which defeats the purpose of having a "normal" visit to Ireland...

    The Hospitality sector, just like the farmers, or any other group in Ireland, are looking for handouts.. rather than fix the problems themselves. If their wages were competitive, if they had a decent reputation for retaining workers, etc then they'd find workers.. God knows there's a sizable number of undocumented workers along with the surges in migrant applications before covid.. the population is here for them, but they just don't want to pay proper wages, be secure places for workers, etc.



  • Registered Users, Registered Users 2 Posts: 394 ✭✭Miadhc


    I worked in the bar game for 12 years 97-09 and the money was great, pay rises every year and a strong union.


    Then when the recession started and pubs lost some of the trade they had in the boom years, they wanted all the old staff gone and had an endless supply of cheap labour willing to work till 4am for a tenner an hour.


    Working conditions, cohesion in the workplace and overall level of service went down the toilet and has never recovered.


    The majority of publicans are scum. And it pleases me to see some of them closing up.



  • Registered Users, Registered Users 2 Posts: 27,137 ✭✭✭✭Dempo1


    The only thing PUP did to support anyone was the staff, who were dropped like bad habits at the start and throughout the Pandemic. It is well known, few hospitality Employers availed of wage subsidies which would have helped at least retain some staff. I've a fair idea as to why employers in this sector avoided wage subsidy schemes.

    When sector reopened the same employers then claimed PUP was the reason few employees were returning, this was roundly discredited,, it was infact the case most former employees had actually left the industry and others had left the country entirely.

    The Sector has only itself to blame and the crocodile Tears have become quite Tiresome.

    I've absolutely no doubt employers foolishly thought they'll re hire easily, attract foreign workers but didn't factor in the lack of accommodation, Lack of interest and a collective two fingers to the Industry which has been acting the B****X for years.

    Is maith an scáthán súil charad.




  • Registered Users, Registered Users 2 Posts: 68 ✭✭boardsie12


    They treat their staff like animals!

    Years back, I got a job in a popular Dublin restaurant, and on day 1, instantly gt treated link a sub-human by some fool of a manager, minimum wage and long working crazy hours with only 1 break, and being roared at and shouted at and not even treated well at all.

    Same in other **** hospitality jobs, they don't pay well or respect anyone.

    Why would anyone want to deal with this nonsense?

    I'm glad that some of these restaurants and cafes are struggling and going out of business, perhaps they should have treated people right over the years and this would not have happened, or perhaps restaurants with a bad name should be regulated better and constantly supervised properly.

    Respect is key!

    Unfortunately, most of these restaurants refuse to respect their staff, and most managers don't give a ****.

    It was only a matter of time before this was bound to happen.

    Let's hope, going forward, that things change!!!!



  • Posts: 8,532 ✭✭✭ [Deleted User]


    No we judt dont want to be ripped off.

    7.50 for a bowl of tomato soup

    11 euros club sambo

    8 euros pot of tea.



  • Registered Users, Registered Users 2 Posts: 2,177 ✭✭✭eggy81


    Coffee shops boomed like never before during Covid



  • Registered Users, Registered Users 2 Posts: 27,137 ✭✭✭✭Dempo1


    Even aside from the staffing crisis, which the sector is entirely to blame for, there's also other matters determining viability that few people are discussing.

    Personally I believe and with some experience, a lot of Restaurants, particularly those leased are and have not been viable for quite some time. The Pandemic exposed a lot of vulnerabilities and whilst some will argue government supports made sense they actually created a false economy, propping up business that were just in reality unviable.

    There's enormous Revenue Debts warehoused, Substantial Rental Debts owed , Suppliers struggling to get paid and reducing credit terms and of course staffing crisis. I predict a lot of closures in the coming months, already court cases have commenced and there's still un resolved insurance claims, notwithstanding additional insurance and enormous increase in utility and operating costs.

    Whilst no one could have predicted the Pandemic the sector was already fragile and I don't believe has recovered from the pandemic, in essence Government supports (and be under no illusions) were Substantial and perhaps necessary to an extent given the uncertainty, but there's a harsh reality and that is , these supports, warehousing of Debts have in essence only prolonged the inevitable, the closing of many, many unviable Restaurants and Pubs.

    Is maith an scáthán súil charad.




  • Posts: 14,769 ✭✭✭✭ [Deleted User]


    Are you paid too much?

    As I said in an earlier post, people like yourself want goods and services at prices charged in lower cost/pay economies, but also want much higher wages than paid in those economies. Hypocrisy at its finest.

    I struggle to understand why people complain about prices, after they have paid, just look at the price list before ordering and you won’t be ripped off.



  • Registered Users, Registered Users 2 Posts: 11,395 ✭✭✭✭Furze99


    So many people reporting that the root cause of staff shortages are poor pay, conditions like changing shift hours and lack of loyalty to staff. I'm sure it doesn't apply throughout the sector and there are good employers who value their staff. But clear also that many have become used to treating their workers as cheap and disposable.



  • Posts: 8,532 ✭✭✭ [Deleted User]


    So 43 euro for two people for a few sambos, soup and tea in a bog standard hotel is good value?

    There is an employment crisis at the moment. What I'd like to see are the profit margins some of these Hotels and restaurants are operating at before I have an ounce of sympathy for them not being able to get suitable staff.

    Ireland is a massive rip off. There's no two ways about it. I'll always go foreign.

    I remember being in Clare for 3 nights about 5 year ago. We paid for a cottage which was 400 euros. Fair enough. Then the receptionist turned around and presented us with a bill for €280 for the ESB. That's a shakedown. I don't have an American accent either.

    It's my opinion that a lot of these places are pulling indecent profits and that can be partly attributed to paying minimum wage. In the tourist traps they really don't rely on returning custom either so they don't care to much about the experience. Hence they hire unsuitable staff just to fill a gap.



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  • Posts: 8,532 ✭✭✭ [Deleted User]


    Of course there are good employers and good experiences to be hard for the customer.


    I think though the overwhelming experiences of many are negative when it comes to the hospitality sector in Ireland. Prices are just mental for what you get in return.



  • Registered Users, Registered Users 2 Posts: 27,137 ✭✭✭✭Dempo1


    More times than often customers arrive at premises , of course look at menus, prices etc , it's not just as simple has analysing menu prices , being horrified and getting up to leave , some will have booked an occasion, some will have travelled to an establishment, some may have few options and may have already purchased drinks etc. Of course people can vote with their feet but not always possible.

    I recall I had a restaurant in Dingle, over 20 years ago. I was fascinated, even back then at Tourists browsing menu's throughout the day , I initially thought , maybe looking for choice, preference for a particular type of food etc , Not at all,, I discovered, they were primarily checking prices . This was at a time you had 3 choices in Dingle

    Fish and Chips

    Crap food in grotty tourist type restaurants

    Off the scale Fine Dining prices.

    My solution and it caused uproar at the time. The introduction of the first Early Bird Menu in Dingle. The Goal to Drive business 5 - 7 by offering a simplified menu with value for money the Key.

    I went from a half full restaurant 5 -7 to a queue out the door and bookings 6 months in advance during peak times.

    Other restaurants caught on in time but even the Fine Dining establishments tried to compete , the difference, my 3 course price was the same as some starters in these restaurants. I retained a fine dining Bistro style menu from 7 - 10 but always watched prices.

    I offered excellent Food at a reasonable price and constantly good service. Developed a successful business by retaining an excellent small team , controlling costs (I was chef Proprietor) and understanding my customers and did not Gouge. My margin was lower 5 -7 but made up through wine sales and enhanced my 7 - 10pm business through reputation and whilst later menu more expensive, so to was choice on offer , I was never greedy , Just practical.

    Repeat Business is Better than No Business and primarily achieved by consistency and Well trained and cared for staff . These simple concepts sadly lost in the sector over the past 20 years unfortunately.

    Is maith an scáthán súil charad.




  • Registered Users, Registered Users 2 Posts: 1,332 ✭✭✭ginoginelli




    There is a culture of bullying and mistreatment in the industry. If you work there you are almost expected to treat your subordinates like ****. Lower end postions like kitchen porters and commis, who do back breaking work for peanuts, regularly get roared at and humililted by Sous chefs and head chefs, who never bothered training them properly in the first place, and are doing 12 to 14 hour days themselves for a **** salary.

    Owners are also operating on razor thin margins (some are lower tan 5 percent net profit) and are under huge pressure.

    Now with rising costs the whole industry in ireland is becoming unsustainable.

    Its going to be a tough fix.



  • Posts: 25,909 ✭✭✭✭ [Deleted User]


    The above guys are irritating but happened to come on last night and seeing London prices in Carnaby. :D

    Aberdeen Angus pie and champ mash £10.95

    Into an Indian, £14 for main. Clam etc. pasta elsewhere for £16.50.

    Prices have probably increased a bit now to match an Irish culchie pub. But yeah, one of the 5 biggest/most important cities in the world and it's cheaper to get a bit to eat (let alone the variety and quality) than most of Ireland.



  • Registered Users, Registered Users 2 Posts: 27,137 ✭✭✭✭Dempo1


    Discussion on Scare Byrne, RTE 1 coming up , 3 restaurant owners will discuss increasing costs , for those who might be interested 😏

    Is maith an scáthán súil charad.




  • Registered Users, Registered Users 2 Posts: 31,298 ✭✭✭✭Wanderer78


    funnily enough, you d probably find most industries have all sorts of state supports, without which, simply wouldnt be, many large corporations simply wouldnt exist without these state supports, and this has always been the case, long before covid turned up!



  • Registered Users, Registered Users 2 Posts: 3,039 ✭✭✭Sunny Disposition


    Hospitality has always been a hard game to work in. Very unsociable hours, poor pay, and far too often intimidation and bullying from management. A staff shortage is pretty inevitable when times are good. In a way its surprising the labour shortage isn't far worse.



  • Registered Users, Registered Users 2 Posts: 2,211 ✭✭✭LineOfBeauty


    My degree was in hospitality management, worked in different roles for different hotels in different regions of the country for years and finished up in a 5 star hotel in Dublin. The common thread among all of these jobs was that, aside from HOD's upwards, practically every person I encountered no matter the department they worked in would practically bite your hand off to get out of the hospitality industry. Numerous reasons why but of course the most obvious are the unsociable working hours, the pretty dreadful pay (and nobody cuts more corners than hospitality places) and the demeaning nature of the job.

    On the last one, you can provide service in a respectful way but when you're getting roared at both by ungrateful guests and managers only too happy to take the side of the guest for the sake of an easier life then it becomes soul destroying. On top of all of that the work is tough, you're constantly doing something, things you'd take for granted working in an office environment are treats to cherish in hospitality. Maybe there used to be a good working atmosphere among staff pre recession and the chance to actually make your way in a long term career that could provide a comfortable life for you, but at an average wage of around €22,000 a year for the regular run of the mill employee, it's entirely unsustainable.



  • Registered Users, Registered Users 2 Posts: 27,137 ✭✭✭✭Dempo1


    Quite possibly but those supports are generally focused towards attracting inward investment which in turn leads to employment, corporation taxes etc , I'm referring to governent supports that essentially propped up unviable businesses.

    Is maith an scáthán súil charad.




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  • Registered Users, Registered Users 2 Posts: 31,298 ✭✭✭✭Wanderer78


    once again, without these state supports, many of these businesses wouldnt be viable. i worked for a large corporation that never made a profit!



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