‘Multi-nationals are going to cannibalise restaurants and bars in Northern Ireland'

Increased costs are leading to closures, reduced opening hours, limited investment, more expensive and reformulated menus, which will result in a transformed food market, they suggest. 'Multi-nationals are going to cannibalise the business,' says Eamon McCusker, the owner of two Chubby Cherub restaurants and an AMPM in Belfast. 'Hospitality has been one of the best things we've always had to offer. We have such a diverse range of product and people and independent venues. We are going to end up with a soulless hospitality offering within the city.'
In April, employer National Insurance (NI) payments increased from 13.8% to 15%, with the lower threshold on salary payments falling from £9,100 a year to £5,000. At the same time, the minimum wage for workers aged over 21 rose from £11.44 to £12.21. And 2025 was 'always going to be a difficult year' for hospitality employers, Eamon says, but the incremental increase in the price of supplier products has created a 'fear factor' within the industry.
Beef price hikes are particularly noticeable, says Colin Neill of Hospitality Ulster. 'More farmers seem to be getting out of beef production. Therefore, the price is going up.' Eamon McCusker says he would need to sell steak at his restaurants 'at £46 or £48 to make the margin we made five years ago.
'We've tried to keep our steak within a reachable price range but it's getting to the stage where we're going to have to think, 'Can we keep this on the menu?'' A few weeks ago, Lazy Claire Patisserie, a French-style bakery in Belfast posted a list of increases in its input costs. T45 (strong) flour, which was 86p per kilo in 2021, now costs £1.52 (a 77% increase). Dark chocolate has risen £7 to £10.22 across the same period. Caster sugar is up to £1.16 per kilo from 84p in 2021. Dairy has seen the biggest leap at all for the patisserie: from £3.88 per kilo in 2021 to £7.80 today: a 101% increase.
'Across the board, everything has gone up,' says Daniel Duckett, chef and owner at Lazy Claire. 'The only thing that I can think of that's remained fairly stable is vanilla… but it was already quite expensive.' Jonny Taylor, of Shed Bistro on Belfast's Ormeau Road and Saga on the Malone Road, spends much of his week juggling supplier costs: 'You have to be playing suppliers off against each other constantly. They're all increasing prices.'
Supplier price increases combine with energy costs, business rates and labour cost increases, to create a perfect storm for food hospitality businesses. Hospitality differs from other industries and sectors in that it is labour intensive and can't automate. Hospitality Ulster says that larger operators are freezing recruitment in order to be more efficient; others are cutting staff. Eamon McCusker, who employs 107 staff across his outlets, says he will have to find an extra £270,000 in 2025 to cover additional costs. 'Ten years ago, staff costs were somewhere between 25% and 30%. That would have been a standard for the industry. Today standard costs are between 35% and 40%. Some people are operating staff costs around 50%.'
One inevitable result has been a rise in prices that customers are experiencing at check-out. 'Most of my industry colleagues have put their prices up by 10% and 60% on beverage just to stay still. The kind of environment that we're all working within at the moment is pretty scary to be honest,' says Eamon McCusker. Lazy Claire Patisserie has increased their coffee from £3.30 to £3.60. 'We got notified by our coffee supplier that prices would be going up 19% at the start of April so all of our coffee prices have gone up,' says Daniel Duckett. 'But we've traditionally been cheaper than the market for coffee.'
Shed Bistro and Saga have also increased some of their prices, although Jonny Taylor is frustrated when people compare the price of their steaks to supermarkets. 'You are paying for the person who cooks it, the person who takes the order; the person who cleans up after you...'
Food hospitality businesses are conscious that Northern Ireland was one of the worst regions hit by the cost of living crisis. Consumers in the region have a low discretionary disposable income spend, so business owners tread carefully around price increases. Honesty and transparency appears to work at Lazy Claire Patisserie. Daniel Duckett received 'supportive' comments from customers following his Instagram post about supplier price hikes. 'When you break it down for them, they really appreciate that,' he says. 'If we engage with the customer, let them know what's going on and then they will understand.'
Businesses are exploring other ways to cover costs. Last year, Jonny Taylor rebranded restaurant Blank, a casual fine-dining experience, to Saga: 'It's still a nice restaurant but it's not anywhere near as fine dining as it was. [Blank] just wasn't sustainable.' Jonny has introduced a burger night at Shed for a more affordable menu. Daniel Duckett reformulated his menu, taking out one specific pastry (a pecan tart) that was squeezing his margins. Eamon McCusker removed a number of products from the menu at his outlets.
Another solution is to reduce working hours. Lazy Claire Patisserie is closed on Monday and Tuesday. Colin Neill of Hospitality Ulster says some business operators have been forced to cut down to a four-day week. 'If you're in Belfast on a Monday, Tuesday, Wednesday and there's nobody open or limited choice it has an impact on the wider tourism product.' Some businesses are being forced to stop reinvestment which can be a death knell. If you're not growing, you're dying,' says Eamon McCusker.
Hospitality Ulster is calling for parity of competition between Northern Ireland and other parts of the UK. In England, businesses have a 75% discount on business rates bills; in Wales this figure is 40%. The 13.5% hospitality VAT in the Republic of Ireland, soon to be reduced to 9%, is thought to put NI (where the rate is 20%) at a further disadvantage.
Hospitality Ulster is lobbying Westminster for a similar reduction: 'We have called on our Finance Minister to join us in a joint campaign to meet with the Chancellor around reduced VAT. There' is support in England, Scotland, Wales for Northern Ireland for a VAT reduction pilot scheme. So it could be done here in a closed test for a few years. There are ongoing plans for Northern Ireland to be a special economic zone - and a VAT test could be part of that.'
The alternative, believe local hospitality business leaders, will be an underwhelming food and drink hospitality offering. 'The only places that'll be left will be the big soulless corporations with generic menus. No creativity. No invention. No nothing,' says Jonny Taylor. Eamon McCusker called for a working group 'to make real, proper changes with the help of the Executive. We need momentum. There's too much talk and too much time being wasted.'

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Metro

2 hours ago

• Metro

Eagles and Seagulls fear bigger predators in this summer's transfer window

Crystal Palace and Brighton may be fierce rivals on the football pitch but they are kindred spirits, if not best buddies, when it comes to transfer-window dealings. Both the Seagulls and Eagles are among the best at identifying raw talent and nurturing it into highly sought-after commodities which attract the rich. Brighton are especially adapt at selling their best players for a whopping profit and already having the perfect replacement ready to step up to the plate and make a telling first-team contribution. Albion owner Tony Bloom is exceptionally sharp at this and is just as successful in buying racehorses which become winners at high-profile meetings like the Cheltenham Festival and Royal Ascot. Brighton and Palace are joined by Brentford, Bournemouth, Fulham and others in selling fan favourites for big figures which are then reinvested in fresh faces who keep around the top half in the top flight. But clubs like this rarely sell more than one or two players in a window as they can't afford big turnovers which threaten to destabilise the dressing-room. The Eagles are constantly linked with moves for their star performers but Michael Olise was the only significant exit last summer when he moved to Bayern Munich for a hefty fee. This window, Eberechi Eze, Marc Guehi and Adam Wharton are among the players reportedly up for grabs from the FA Cup winners but they will be reluctant to sell too many with their first venture into Europe on the horizon. Guehi, who has interested Liverpool, Chelsea, Newcastle and Tottenham in the past 12 months, is now reported to be happy to see out the final year of his contract if the right club fails to make the right offer so Eze could be the one to go. Spurs are 3/1 with Unibet to buy him with a switch to any German club 6/1 with Bet Victor. A move to any French club is 12/1 with the same firm while Manchester City are 14/1 with Unibet to snap him up. Paddy Power, Betfair and Sky Bet have priced up 22/1 for a move to old Trafford but it's 4/6 with bet365 he stays where he is and Oliver Glasner is allowed to keep the jewel in his team's crown. Newcastle are 10/11 with the same firm to buy striker Joao Pedro from Brighton but Chelsea, who can't resist a shopping trip to the south coast, are 5/2 with bet365 to hijack the signing. Scotland's Jacob Fearnley has climbed into the top 50 in the world rankings and his confidence will be further boosted after reaching the quarter-finals at Queen's last week. More Trending The Edinburgh-born British No.2 progressed to the second round at Wimbledon on his debut last year and is 11/10 with William Hill to beat fifth seed Flavio Cobolli in the first round at Eastbourne. It was a decent Royal Ascot for us with True Love, American Affair, Field Of Gold and Trawlerman all successfully tipped to win in this column. But the best advice was Cercene to win Friday's Coronation Stakes at 33/1 which was given on X. Don't miss out at future festivals like Glorious Goodwood, follow @tipstermetro. MORE: Kevin De Bruyne tells Antonio Conte to sign England star in blow to Manchester United MORE: I flew 6,000 miles to meet a stranger for a date MORE: Man Utd make fresh transfer move for £44.5m star 'in the last few hours'

Fashion United

2 hours ago

• Fashion United

River Island to close 33 stores, putting hundreds of jobs at risk amid restructuring

British high street stalwart River Island has announced plans to close 33 of its 230 UK stores, a move that puts hundreds of jobs in jeopardy as it seeks to restructure its operations in response to shifting consumer habits and rising costs. As reported by the BBC, the company is also negotiating rent reductions across a further 71 locations. The proposals come ahead of a creditor vote scheduled for 4 August, with a court decision to follow three days later. Chief executive Ben Lewis described the closures as a painful but necessary step in light of a retail environment increasingly shaped by online shopping and inflationary pressures. 'We have a large portfolio of stores that is no longer aligned to our customers' needs,' he said, adding that the brand remains committed to minimising redundancies where possible. River Island reported a 33.2 million pounds loss in 2023 following a 19 percent drop in sales. The restructuring reflects broader pressures on mid-market fashion retailers squeezed by rising operating costs, including changes to employer National Insurance contributions, and fierce competition from digital-first players like Shein, Boohoo, and Temu. With about 5,500 employees, River Island's challenge now lies in reconfiguring a legacy retail footprint to remain competitive in a retail landscape where price, speed and digital reach increasingly define success.

Daily Mirror

9 hours ago

• Daily Mirror

Summer job rules every parent needs to know this summer for their child

MoneyMagpie Editor and financial expert Vicky Parry explores employment law for under-18s considering a summer job Working a summer job is a great way for teenagers to earn some extra cash, gain some work experience, and have some independence. But there are some important laws that parents – and teens – should know about to make sure their employer is sticking to the rules. ‌ How long can an under-18 work each week? Children from the age of 14 can work part-time hours (in some areas, this is lowered to 13 – check your local council's education department). Those under 14 may be able to work in exceptional circumstances, such as if they are a performer in TV, theatre, or as a model, and will need a performance licence. ‌ Children over school leaving age can work full-time up to 40 hours a week. This is the age of 16 in Scotland, Wales, and Northern Ireland. In England, children must be in part-time education or training until the age of 18, so can only work part-time hours. How much can under-18s earn? Young people aged 16 and above may be paid through PAYE systems, and once they turn 18 adult employment rights apply. National Minimum Wage rates apply regardless of a person's age. This means employment must meet the minimum hourly rate for their age bracket. For under-18s, that is £7.55 an hour (rising to £10 an hour when they turn 18). So, if you get a job earning £7.55 an hour for twenty hours a week, that would be a gross pay of £151 a week. This would not be enough to qualify for National Insurance or tax contributions, so £151 would be the take-home in most cases. Over-16s need to pay National Insurance if they earn more than £242 a week. They would pay tax when they earn more than the annual Personal Allowance (currently £12,570). Sometimes, for full-time or highly paid summer jobs, this means they may be taxed at first but can claim a refund when the job ends. Can under-18s be self-employed? Yes! Technically, a company director can be appointed to a Limited Company from the age of 16, however it is advisable they are not the sole director. This is because they are legally responsible for company activities, including filing with Companies House and tax returns. Under-18s also don't have legal capacity to enter into certain contracts such as with suppliers, and will not be able to apply for financial business support or business bank accounts. ‌ Under-18s can operate as sole traders, and will need to register with HMRC for Self Assessment if they will earn more than £1000 (the Trading Allowance). They will need to submit a tax return every year to HMRC, and keep accurate accounting records to do so. They won't pay tax on their income if it is below the Personal Allowance of £12,570 each year, after business expenses. They may be required to pay National Insurance contributions. Safe work environment awareness If a job requires operating heavy machinery or toxic chemicals, the workplace must provide relevant training and supervision. There may be some parts of the job that an under-18 cannot do, such as operating dangerous machinery. They cannot be discriminated against for their age in the work environment. ‌ An employer must provide relevant health and safety training to every employee, regardless of their age. This includes a responsibility to work within reasonable hours. For most employment for under-18s, this means no scheduled work between 10pm – 6am, with some exceptions such as creative work (like being a theatre actor), healthcare, or retail. This only applies if there are no adult workers available to do the work. It is illegal for any under-18 to work between midnight and 4am, regardless of their job or industry type. There must be a 12-hour rest break in any 24-hour period in which they work, and any shift over 4.5 hours must include a half hour break (paid or unpaid). Each week must also include a continuous 48-hr (two-day) rest break. ‌ When working late, an employer has a duty of care to under-18s to ensure they have the supervision of an adult employee where possible and necessary. They shouldn't be left alone unless there is nobody else to do the job. Under-18s working on alcohol licenced premises Local councils set their own rules about under-18s working in pubs, cafes, restaurants and event venues that serve alcohol. Usually, they are permitted to serve alcohol but this may be restricted to only bottled or canned drinks. Make sure teens know HR policies Summer jobs are often the first time young people will come into regular contact with hierarchies and colleagues and customers of all ages. This can mean they are unsure how to handle difficult situations where they feel uncomfortable. ‌ It might be that they feel a colleague or customer is being inappropriate with them. Or, they may not realise that someone is acting inappropriately, such as using a managerial position to pressure them into social engagements outside of work which they don't want to attend. Make sure your teen knows the policies of the company they work for, including grievance policies. You should also ensure they are aware of creating boundaries between work and personal life, and that it is OK to have them. Create a safe space for your teen to talk about work, and pay attention to anything they say which sounds like a senior colleague is being inappropriate or they are put into unsafe situations with customers. Saving summer job cash Under-18s can access savings accounts for children, so if they already have a Junior ISA it's a great idea to encourage them to save some of their summer job earnings into it. If they don't yet have an ISA or savings account, now is the time to talk to them about the importance of creating a financial safety net early on, and to help them find a bank account that suits them. Some parents also choose to use their teen's first earning opportunity as a way to teach them about life skills. Take some time to explain what their payslip means, how National Insurance works, and tax basics. You might also help them learn about budgeting, breaking down their weekly or monthly earnings into savings and spending pots based on their expenses. Some of the brands and websites we mention may be, or may have been, a partner of However, we only ever mention brands we believe in and trust, so it never influences who we prioritise and link to.