Nash 19 shuts down: 'I haven’t seen this scale of closures since the economic crash'
To And Cafes Restaurants Have 19 Picture: Larry Nash Nationwide 230 July Cummins Almost Since Joins Closed
One of Cork’s best-known restaurateurs says out-of-control costs forced her to close her business, with warnings that hundreds more eateries are on the brink of collapse.
Claire Nash, who ran Nash 19 in the heart of Cork city for over 30 years, has become the latest restaurateur to blame surging costs for closure and joins the list of almost 230 restaurants or cafes nationwide that have closed since last July.
The third restaurant closure in Cork city in just over a week has prompted renewed calls from hospitality leaders for urgent government action to save "an industry in crisis".
Ms Nash said all of the variable costs and risks that face any business had combined to create “a perfect storm” for her.
“I just couldn't hold on to it," she said. "I’ve nothing left in the tank.
"It is difficult to blame anyone or anything in particular, but the cost of doing business is unmeasurable, it is out of control, and it has led me to the end of the road."
Adrian Cummins, chief executive officer of the Restaurants Association of Ireland, which represents 3,000 businesses employing 150,000 people, said soaring energy costs, the Vat increase, the increase in the minimum wage, and rising supplier costs have all combined to cripple the sector.
“I haven’t seen this scale of closures since the economic crash in 2012,” he said. “The closures are increasing at pace since January 1.
"There are an average of 15 jobs in each of these small cafes and restaurants. So that's 3,750 jobs lost in the sector in the last few months.
“I’m worried about how much worse it’s going to get. I fear we could see 500 closures by March 1.
“The Government just isn't listening to us. Are they going to let all these businesses go to the wall without listening to us?"
He called for an immediate rescue package that must include the reinstatement of the 9% Vat rate for food-led businesses and an extension to 10 years of the repayment period for warehoused hospitality debt.
“Failure to implement both will result in hundreds of business casualties,” he said.
Finance Minister Michael McGrath said he intends to meet with Ms Nash to gain a "fuller understanding" of the difficulties that led to the closure.
He told the : “Claire and her team have made an extraordinary contribution to our city for over three decades, and the closure of Nash 19 represents a great loss.
“I do intend to meet Claire to gain a fuller understanding of the difficulties that led to the closure. This understanding is important so we can all work together and ensure we have the best possible hospitality offering across the country long into the future,” he said.
Lord Mayor of Cork Cllr Kieran McCarthy said small to medium-sized enterprises need greater protection from continuing rising costs.
“There are many cost reduction levers that only central Government can move,” he said.
Tánaiste Micheál Martin said he could see the “long shadow of covid” over the closure of Nash 19, and indicated the Government will take action to find solutions to prevent further business shutdowns.
“There has to be a proper analysis of what is going on,” he said.
He paid tribute to Ms Nash as a “force of nature" and described the restaurant as an institution and a “forum” for discussion on all things Cork.