Perry Street owners owed creditors over €1m as popular Cork cafes close
Café Ringaskiddy's Street Perry
The owners of Perry Street Market Cafe have said they are "heartbroken" as they confirmed the immediate closure of all three of their locations in Cork.
The business had cafes in the city centre, Ringaskiddy and Grange, but a notice placed on the window of their cafe in Grange said rising costs and "unprecedented challenges" had led to their closure.
The Restaurants Association of Ireland (RAI) has accused the government of ignoring the plight of Ireland’s fragile hospitality sector following the shock closure.
The RAI also warned that many more food-related businesses will close during the general election campaign and said the crisis facing the sector must be tackled head-on by the incoming government.
“The government is not listening to our concerns. They just don’t understand how bad it is our there for our members,” RAI chief executive, Adrian Cummins, said.
Perry Street Market Cafe is the latest high-profile food business closure in the city, coming just days after the closure of award-winning country pub, Blair’s Inn, and weeks after the closure of the city’s legendary Lennox’s chipper — both of whom cited massively increased costs as factors in their decisions.
Set up by former accountant Brian Drinan and former architect Paul Coffey in 2012, the Perry Street chain opened on the city centre’s Perry St and became well-known for its artisan food, fresh coffee and homemade cakes.
At the height of its success, they were operating at five locations, but that had reduced to three in recent years — Perry St, Grange and Ringaksiddy.
But in a statement on Thursday, the business pair said they felt they had no option but to shut all three locations immediately citing the pressures facing the hospitality industry.
Mr Drinan and Mr Coffey did not respond to requests for comment.
According to the most recently available accounts for Perry St Market Cafe Ltd, for the year ended December 2022, the company owed creditors just over €1.1m, including around €500,000 in taxation.
In a statement, the owners said: "It is with deep regret that we announce the immediate closure of all three Perry St Market Cafe locations.
"The hospitality industry has faced unprecedented challenges in recent years, and these difficulties continue to intensify.
"Reflecting on the many good years, we want to extend our heartfelt thanks to everyone who visited our restaurants. "We have had the privilege of serving wonderful customers, watching families grow and sharing countless memorable moments with our community."
The owners issued a "special thank you" to their team of staff, who they said were "truly the face" of Perry Street.
"Your dedication and warmth have been invaluable and we were incredibly grateful for everything you've done.
"The decision was not made lightly and we are genuinely heartbroken to reach this point.
"With sincere gratitude, Brian and Paul."
Mr Cummins said there will be many more closures like this until the government addresses the underlying crisis facing the sector — escalating costs, many of which arise out of government decisions on the minimum wage, pensions and sick pay. He described the recent €4,000 top-up grants as like “chicken feed” compared to the supports needed.
“We have explained to government that we didn’t want grants. The financial structure is broken. There is just no margin in the business anymore because costs are out of control,” he said.
“The decision in the budget not to reduce Vat for the sector was the nail in the coffin. We will continue to lobby but we will have to wait until a new government is formed. And unfortunately, we will see more closures during the election campaign.”
Aaron Mansworth, president of the Cork Business Association, said the Perry St closure underlines the fragility of the hospitality sector and proves how difficult it has become to operate a food and beverage business, especially one that depends on day-time trade.
“We have seen costs soar in every aspect of the business, and a lot of those costs are controlled by government, and they have all come at the same time, and the supports the sector needs just weren’t there in the budget,” he said.
Speaking about the closures, local councillor Peter Horgan said the onus of support for the hospitality sector in Cork falls on the coalition parties to solve.
“This is devastating news to hear as we head into the Christmas season,” said Mr Horgan.
"Hospitality has been screaming for support for a long time now and issues have not been addressed by the Government parties.
"If the issues were addressed we would not be seeing such closures and pressures.
"The collateral damage of not addressing hospitality effectively is now lost jobs and vacant properties. Government must deliver supports.”