Michelin-star restaurant blames 'insane' running costs for closure
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A Michelin-star restaurant crowned the best in Ireland the year before the Covid-19 pandemic hit has said “insane” running costs have forced it to shut.
Loam restaurant and wine bar near Eyre Square in Galway announced it would not be reopening in the spring after giving up its lease.
Crowned Best Restaurant in Ireland in 2019 at the Restaurants Association of Ireland Awards, Loam is known for its high-end food, with prices for a seven-course meal with wine costing €135.
It was opened nine years ago by head chef Enda McEvoy and his wife, Sinead Meacle, and has consistently scored highly on rating services such as Tripadvisor.
Despite its lofty reputation among food connoisseurs, Mr McEvoy and Ms Meacle said they were compelled to close the restaurant.
In a statement on its website, Loam said: “The cost of running such a large space right now is insane and it doesn’t look like it’s going to get any easier. In the background, we are working on a new project and, of course, our other premises, éan, will be running as usual.”
Éan is a bakery, restaurant, and wine bar located on Druid’s Lane, next to the Druid Theatre Company.
Soaring energy costs have seen small businesses put under severe financial strain in the past year, coupled with significant increases in everyday food costs as inflation bites.
A number of restaurants and hotels have said they are seeing monthly energy bills exceeding five figures, while previous to the crisis, they would not have come near such figures.
Figures from the Central Statistics Office (CSO) last week showed that wholesale electricity prices increased by more than 93% since November 2022 and were nearly 10.5% higher in December 2022 when compared with December 2021.
It added that over the 12 months to December 2022, the cost of dairy products are up almost 40%, fruit and vegetables up more than 19%, and fish up more than 13.5%.