Restaurants say they have been crippled with mass cancellations with up to 95% of customers calling to cancel bookings in the weeks before Christmas, at what is usually the busiest time of the year.
One restaurant owner in Sligo said they have had 2,500 cancellations in recent weeks and have lost “thousands upon thousands” of euros as a result, with restrictions and government messaging causing damage to trade.
Anthony Gray owns two restaurants in Sligo town, Hooked and Eala Bhán, and said that 95% of bookings have been cancelled over just the last three to four weeks as customers are staying away.
“Christmas is basically cancelled for a second year running, there’s been no doubt about that,” he said. “We’re being closed without being told that we’re closed.
“The Government is not forcing us to close but the tone and the tenure that they’re taking out, certainly by telling people to restrict their movements within the hospitality sector, it has devastating effects.
“Over the last three weeks I’ve seen 95% of all parties cancelled.
“Last night, we were getting numerous emails and phone calls saying, ‘We’ll have to cancel’ and they were even small parties of four to six. So now you’re just down to basically your two [people at a table].”
He explained: “Both restaurants open until nine o’clock at night and both would have been inundated with Christmas bookings. If you were to quantify that per person it’s 2,500 covers wiped out.
“[Losses] are in the thousands upon thousands. Gone.”
Estimated losses from office Christmas party cancellations have already cost restaurants up to €150 million, according to the head of the Restaurants Association of Ireland, with the Tanaiste signalling that NPHET is likely to recommend the imposition of further Covid restrictions following their meeting on Thursday.
Leo Varadkar said on Newstalk this morning that he believes there could be more limits put on “social mixing” along with two other areas that will likely be subject to further rules in response to the Omicron variant.
He said: “I would expect more recommendations around the management of close contacts, recommendations to decrease the amount of social mixing, and recommendations around international travel.”
Mr Gray said that Christmas has been "cancelled” unofficially for a second year running, with no clear plan for the Government and “devastating effects” on the night time economy.
“It has a snowball effect, not just on my business. It sends shock waves through all industries including taxi men, beauticians, hairdressers,” he said. “It’s devastating on the staff. The staff are coming asking me, ‘Are my hours going to be reduced?’
“It’s very disheartening and it’s mentally fatiguing trying to deal with that. These people have been with me for 10 and 12 years and you’re like a family.
“The biggest thing we want is clarity and a coherent plan. We’re in this now 21 months, maybe 22 months, and we’ve no plan.
“We’re back to the same, it’s like a one trick pony, restrict, restrict, restrict. Surely to God we can come up with a better plan than this.”
Adrian Cummins, CEO of the Restaurants Association of Ireland, said that restaurants have suffered huge losses due to the cancellation of corporate office Christmas parties, with losses to businesses estimated at up to €150 million.
He said further restrictions would “cost the industry hugely” and restaurants are "piling debt on top of debt".
“There is between €90 and €150 million of losses to date already just on corporate cancellations,” he said.
“Which is a substantial amount of money when you think that business depends on Christmas and December, it’s like one full quarter of their income coming in.”
Restaurant owners are now very concerned about whats to come in January and February next year, saying the government needs to provide the hospitality sector with a plan for living with Covid.
“What does the new year look like in terms of the first quarter of next year? We’re now looking at the EWSS being tapered off on the 1st of February,” he said.
“What we really need now is a plan for living with Covid. There doesn’t seem to be a plan for hospitality at all. It seems to be fumbling along from one crisis to another.
"Businesses are essentially piling debt on top of debt. I just feel that once the support packages are pulled or reduced you’re going to see major economic upheaval in the industry.”
Hooked restaurant owner Mr Gray said: “Restaurants are still open, we are still taking bookings of six or more.
“And we are implementing the law, we are making sure people have a Covid certificate, we’re making sure there is proper ventilation in the restaurant and that safety protocols are being followed.
“If you were to look at the most recent [Covid] figures, restaurants are way down the pecking order in regards to national outbreaks. We’re not even in the top ten. So sometimes I do think that we’re totally being treated unfairly.”
